Maximizing the Joint Venture Value Proposition

Launching and operating a world-class JV is a complex effort, but it can produce a better ROI than acquisitions and mergers. Choosing the right partners and providing senior leadership oversight over the life of the JV are critical.
By Joseph Warren

There is a saying about Joint Ventures (JVs) that goes something like this: Get the launch right and the rest will take care of itself. Sounds simple, but the reality is that even JVs that follow commonly recognized best practices fail with regularity.

Best practices include carefully selecting the right partners, and ensuring there is internal alignment of business goals, a well-defined structure and decision making process, strong governance, and an equitable financial system.

The best practices make good business sense, so why do so many JVs fail? The answer is that too many JVs are rushed to startup, avoiding discussion on complexities like cultural differences and market strategies.

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