Joint Ventures
What is a joint venture and is it right for your business?
A joint venture is a commercial arrangement between two or more individuals or businesses. If you do not have the required resources to be able to develop a certain aspect of your business, then one option may be a joint venture between two independent bodies.
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You may require specialist knowledge and experience, certain assets or connections. Perhaps it is a matter of finance. Whatever the requirement, a project-specific joint venture will often allow for the project to go ahead.
If you entering into a joint venture you will need a joint venture agreement which sets outs each parties’ contributions, obligations and share of the profits. Joint venture agreements are similar to shareholders agreements in many ways as they also provide for management of the relationship between the parties and the eventual termination of the joint venture.
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