Joint Ventures

A joint venture can be structured in a number of ways whether it be just a trading relationship, joint ownership of an asset, a partnership or joint ownership of a business through a company.

The basic commercial elements of the deal and often tax issues for the joint venturers, need to be evaluated before the best structure can be chosen and implemented.

Having chosen a structure, there are always number of difficult issues which arise concerning the relationship between the parties. Who has control? If there are several parties are all issues decided on a simple majority or do some require unanimity? Or are there some which fall in between the two? Who provides the funding? What if there is a deadlock on a crucial issue? If one of the principals is an individual, what happens if that person dies or decides to leave the venture? What happens if one party is under performing? All of these need to be considered at the outset and, much as in a venture capital relationship, there needs to be an element of facing up to potential future problems and dealing with them up front.

These issues need practical, creative thinking which takes account of the client's business needs but in the wider context of the joint venture itself. We have the benefit of having been through many of these deals and of the experience which that brings, as well as the ability to provide the lateral thinking which is so often required to find the right solution.