United Kingdom

Creating and setting up a Joint Venture 

 Joint Ventures Creating a new joint venture or strategic alliance requires skills which can often be in short supply, simply because this is not a regular activity for many businesses. Our Joint Ventures Practice focuses exclusively on this area and can offer support from pre-deal strategy though to implementation and governance.

Recent projects and insights

Setting up for long-term success – negotiating a “fair” deal

Our clients recently got back in touch as negotiations for their proposed joint venture were getting going. They were struggling to see how to obtain maximum value from the partnership while ensuring the deal was “fair” and respected both parties’ ambitions. We were able to provide some “outside-in” challenge to improve the robustness of the deal, getting down to the commercial fundamentals. This helped our client appreciate the true value of each party‘s contributions and gains, which in turn helped them structure a balanced deal. Moving forwards, we will be working with them to test the protective provisions of the joint venture agreement through scenario planning.

Using collaborative ventures for international expansion

Our client wants to achieve international growth via collaboration with local partners.  Some of its earlier international projects had encountered significant implementation problems.  The team wanted a better understanding of the structuring options open to them, and their potential advantages and disadvantages, ahead of forthcoming negotiations with some possible partners.  We helped create a high level view of these options, including target metrics, likely contributions, roles, and responsibilities, focusing on which would best suit each venture's particular vision and objectives.  Work continues on immediate next steps.

Practical control and consolidation in a strategic partnership

Our clients – a European utilities group – wanted to be able to exercise control and to consolidate the results of a newly formed partnership business in the Middle East. Their partner desired sufficient influence to be able to control its investment. By working with both partners, we helped identify the options and their implications, including designing a shareholding and governance structure which satisfied both companies’ goals. We provided informed challenge to both parties to ensure that the design structure was not just theoretically sound, but also practical and implementable. We are now helping to ensure that the key principles agreed are carried through the negotiations and captured in the legal agreements. 

 

 

An infrastructure JV in the Middle East

As is the case with many infrastructure services, the national regulator required our client to have a local JV partner. Our role was to provide insight into the local company selected and help assess their suitability. We helped our client articulate its own commercial objectives and build these into a set of design principles for the JV (including specific scope, partner commitments, value extraction mechanisms, terms and protection of intellectual property). Prior to signature of the JV agreement, we worked with our client to plan for and build in protection against a number of future scenarios, including the risk of “early termination” by the contracting authorities.

Contact

Dr Marc Van Grondelle

Dr Marc van Grondelle

Head of the Global Joint Ventures Practice

+44 20 7694 4603

Email Marc

  

  

Brad Johnson

Brad Johnson

Global Joint Ventures Practice

+44 20 7694 1083

Email Brad

 

   

Daniella Carneiro

Daniella Carneiro

Global Joint Ventures Practice

+44 20 7694 3097

Email Daniella

 

  

Steve Burch

Steve Burch

Global Joint Ventures Practice

+44 20 7311 8446

Email Steve

 

 

"We work closely with strategy teams to ensure market entry plans include informed thinking about the options and issues of working with local partners; this helps to avoid pitfalls and aid negotiation.”