When an organization brings an acquired company into the fold, only one corporation exists after the deal, allowing for unilateral decision making. By contrast, after two companies agree to an alliance, there are still multiple parties (two parent companies, and, in many cases, a new company) dealing with disparate interests. This creates a unique set of challenges.
Requirements for Joint Ventures
The key elements to a joint venture may include (but are not limited to) :
The number of parties involved
The scope in which the JV will operate (geography, product, technology)
What and how much each party will contribute to the JV
The structure of the JV itself
Initial contributions and ownership split of each party
The kind of arrangements to be made once the deal is complete
How the JV is controlled and managed
How the JV will be staffed
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