Entering into a joint venture with another business or company can help to grow or diversify your business.
It can give you access to different or bigger markets, allow you to tap into the knowledge and resources of your partner and, of course, the business risk is shared. As with any partnership however, it is vital that the rights, responsibilities and obligations of the partners are clearly understood.
The partners to the joint venture will first need to consider the structure which can take the form of a new business vehicle such as a limited liability company or partnership or the parties can enter into a contractual joint venture. There are advantages and disadvantages associated with each, which will need to be carefully considered.
Once the structure is settled the partners will need to decide on, amongst other things, contributions, rights, profit sharing, dispute resolution and termination of the joint venture. In business, success cannot be guaranteed but if you have a joint venture in mind we can help you prepare an agreement that protects you and gives your venture the best possible chances of success.