Why a Joint Venture?
Joint ventures are a good way to form strategic alliances with other companies. Where two or more “parent” companies agree to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared control to increase profitable margins.
Business Benefits of a Joint Venture:
- Combining complementary R&D or Technologies
- Efficient commercialization of a technology or business concept.
- Developing or acquiring marketing or distribution expertise.
- Sharing of professionals with unique skills.
- Financial support, or sharing of economic risk.
- Acceleration of revenue growth.
- Ability to increase profit margins.
- Expansion to new domestic markets
- New product development
1/3 of fast-growing companies
are involved in Joint Ventures
Source: Trandsetter Baromete, PWC
