{"id":1001,"date":"2022-09-08T08:34:02","date_gmt":"2022-09-08T06:34:02","guid":{"rendered":"http:\/\/matchplat.local\/joint-ventures-how-to-find-the-right-partners\/"},"modified":"2022-09-08T08:34:02","modified_gmt":"2022-09-08T06:34:02","slug":"joint-ventures-how-to-find-the-right-partners","status":"publish","type":"post","link":"https:\/\/www.matchplat.com\/en\/joint-ventures-how-to-find-the-right-partners\/","title":{"rendered":"Joint venture: how to find the right partners"},"content":{"rendered":"

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\"Costruire<\/strong>Joint venture: a definition<\/h2>\n

The term joint venture<\/strong> (JV) is one of the most commonly used in the business world.<\/p>\n

It is a strategic agreement<\/strong> between two or more organizations with the aim of realizing a joint project<\/strong> by pooling their resources<\/strong>, skills<\/strong> and knowledge<\/strong>.<\/p>\n

The activity also leads to a sharing of project risks<\/strong> and return on investment<\/strong>.<\/p>\n

There is no single model for joint ventures, let alone a standard contractualisation<\/strong> for this type of activity, which will be influenced by the legislation of the countries in which they are implemented.<\/p>\n

But what are the most common types of joint ventures<\/strong>?<\/p>\n

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Types of joint venture: unincorporated e incorporated<\/h2>\n

The most well-known distinction is between unincorporated<\/strong> e incorporated joint venture<\/strong>.<\/p>\n

Unincorporated joint venture<\/h3>\n

The unincorporated joint venture<\/em><\/strong><\/a> the conclusion and execution of a contract<\/strong> by which the parties undertake to implement a common project.<\/p>\n

The content of the contract<\/strong> is defined by the companies involved, which establish roles<\/strong>, objectives<\/strong> and conditions<\/strong> for the performance of activities. Furthermore, the contract usually stipulates the duration of the joint venture itself<\/strong>, depending on what has been agreed upon.<\/p>\n

An example in the B2B<\/strong> world of an unincorporated joint venture<\/strong> is the agreement between two oil companies<\/strong> to carry out extractive activities in a foreign country in return for a five-year concession for the exploitation of some wells by the local government.<\/p>\n

The agreement will provide for the sharing<\/strong> between the two companies of the costs<\/strong> and profits<\/strong> associated with the operation, based on the contractual clauses and the roles of each of the two organisations within the processes.<\/p>\n

Incorporated joint venture<\/h3>\n

An incorporated joint venture <\/em><\/a><\/strong>is based on the establishment of a new legal entity<\/strong>, which is different from the companies involved and has its own autonomy.<\/p>\n

Typically, this type of joint venture is created to pursue more complex long-term goals<\/strong> than can be achieved with a contractual joint venture.<\/p>\n

The parties involved might, for instance, need to develop a new line of technological solutions with which to strengthen themselves within their own sector.<\/p>\n

To this end, integrating the know-how<\/strong> and capital<\/strong> of different realities may be the most logical solution to design and market new technologies, on the one hand reducing R&D<\/strong> time, and on the other hand compensating with the counterpart’s resources<\/strong> what is not available.<\/p>\n

An example<\/strong> linked once again to the oil & gas sector<\/strong> is that of Sensia<\/strong><\/a>, a joint venture created in 2019 by Schlumberger<\/strong> – a leader in oil extraction technologies – and Rockwell Automation<\/strong>, a US multinational specialising in industrial automation systems. The aim<\/strong> of Sensia is to combine the different competences of the two companies<\/strong> to develop specific digital solutions for automating processes in the extractive sector.<\/p>\n

Also in this case, the parties will have to define contracts to regulate the joint venture, paying particular attention to the structure of the new corporate entity.<\/p>\n

These aspects are usually defined by a general contract<\/strong> to which several operational contracts<\/strong> are attached, including activities, property rights, product\/service specifications and other legal aspects.<\/p>\n

<\/p>\n

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\"Costruire<\/strong>Why set up a joint venture: reasons, advantages and challenges
\n<\/strong><\/h2>\n

Regardless of the type of joint venture, there can be many reasons for its formation.<\/p>\n

Here are a few:<\/p>\n