Strategic Alliances & Joint Ventures
A strategic alliance is an agreement between 2 or more companies to pursue a set of objectives while the parties may choose to remain independent organizations.
A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets.
Strategic Alliance and Joint Venture is often an attractive alternative to a Merger and Acquisition. The partnership formed between firms can involve the mutual commitment of capital, personnel facilities, technologies, intellectual properties or other business resources. Many companies particularly in cross border arena have found that an alliance can fill gaps in product capabilities, distribution channels or allow access to geographically diverse targets. The current environment of short term life cycle, low cost production and increase technology specialization continues to drive strategic alliances to the top of many corporations’ strategic plans.
Midson Advisors provides assistance through all stages of Strategic Alliances and Joint Ventures: We are actively involved in
- Strategy Development
- Target Selection
- Deal Structuring and Closing