joint venture presentation

Researched by Consultants from Top-Tier Management Companies

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

Top 7 Joint Venture Templates with Examples and Samples

Samradni Pradhan

Many organizations across the globe fall under the category of a joint venture. A joint venture is an organization where two different organizations' expertise is combined to form something even better. If you want to present your data for the proposal of a joint venture or outline your journey to success, this blog post will outline the top 7 joint venture Templates that are perfect to use. These professionally designed Templates will create a lasting impression on the audience. Whether you are looking for something plain and minimalistic or bright and colorful, we have one for everyone! Let's dive in.

Alternatively, if you want to explore some market entry strategy templates, you can check them out  here !

Template 1: Joint Venture Proposal PowerPoint Presentation Slides

ready-to-use joint venture agreement proposal PowerPoint Template includes all the necessary contents, from introduction to public announcements, to make a great impression on the target audience. You can ensure a clear understanding between you and your partner with detailed explanations of important topics such as negotiation rights and dispute resolutions. Highlight your talent, skills, and personnel to complement each other in a joint venture, and list the roles and responsibilities of partners for a smooth business acquisition process. The actionable organization venture proposal PowerPoint Template states the terms and conditions in case of a dispute between partners. Get access to it today!

Download Now!

Template 2: Joint Venture Successful Strategy Business Template

This Slide is a must-have resource for businesses looking to create successful joint ventures that result in stronger, more innovative products. This PPT Template helps you identify strengths, establish clear communication channels, and build strong employee relationships. By implementing these strategies, businesses can create a culture of collaboration that leads to stronger and more innovative products, ultimately benefiting all parties involved.

Template 3: Proposal for Business Venture PowerPoint Presentation Template

Check out our Proposal for Business Venture PowerPoint Presentation Slide if you're searching for an effective approach to presenting your business venture idea. This Slide is created to assist you in delivering your concept in a clear, concise, and captivating manner. Our slide covers all the necessary information you need to persuade investors, partners, or stakeholders, including market analysis, financial projections, and growth opportunities. Use our presentation Template to leave a lasting impression on your audience and set on the path to success. So don't hesitate; start your pitch today with this Template!

Template 4: Journey to Successful Joint Venture Template

Through this amazing Template, cover your end-to-end journey to starting a successful joint venture. The Slide includes four main categories of information around identifying the right partner, negotiation and agreement on terms, implementation, and management of the joint venture, and continuous evaluation and improvement. You can put in the relevant information of each of these categories to give your audience a comprehensive view on the business.

Template 5: Joint Venture Shareholder Structure PowerPoint Slide Themes

This Template allows you to showcase joint venture business model, including mitigating risks, implementing effective corporate governance, and sharing business returns and risks. It also lets you explain the process of graphically converting your business structure into a joint venture, providing a better understanding of your potential audience. With our Joint Venture Shareholder Structure PowerPoint Slide, discuss the relevance of your shared ownership structure for business growth and build a competitive business model for your entity. So, download our Presentation Design today!

Template 6: Strategic Alliances and Joint Ventures Presentation Template

This Slide is an essential resource for businesses looking to showcase successful strategic alliances and joint ventures. The Template focuses on four main pillars of any successful strategic alliance: leadership, teamwork, innovation, and partnership. By using our Slide, showcase the benefits of these partnerships and demonstrate your ability to create successful alliances that drive business growth.

Template 7: Four Steps of the Journey to a Successful Joint Venture Template

This Slide is a powerful tool that outlines the essential steps required to achieve a successful joint venture. This Slide covers four critical phases businesses must navigate to ensure a prosperous partnership. These steps include identifying the enterprise strategy, investigating partner selection criteria, integrating the company contract shared business plan, and implementing plans to manage employee concerns. With this predesigned Slide, have a clear roadmap that guides you through each step of the journey, helping you to avoid common pitfalls and maximize the benefits of your joint venture. Go ahead and add this Template to your cart!

Template 8: Various Driving Forces for Joint Venture Template

This Slide showcases the key factors that motivate companies to form joint ventures. Our Slide covers a wide range of driving forces, including strategic drivers, resource drivers, technology resources, market drivers, risk drivers, and more. This Slide will help you understand the reasons why companies choose to enter into joint ventures and how these partnerships can benefit both parties involved. Whether you want to create a joint venture or understand this business model, our Various Driving Forces for Joint Venture PowerPoint Slide is an essential resource. Get access to it today!

Template 9: Business Joint Venture Contract Checklist Template

This Slide is a comprehensive and easy-to-follow checklist that outlines all the crucial elements that should be included in a business joint venture contract. With this Slide, have all the information you need in a simple tick-and-cross format where you can gauge the status of tasks. Additionally, a column for comments is given so that you can add any relevant information. This Slide ensures to present your information in an easy-to-understand format. So, take advantage of this valuable resource and get your hands on our Business Joint Venture Contract Checklist PowerPoint Slide today!

EXPLORE THESE JOINT VENTURE TEMPLATES TODAY!

So, next time you have a formal presentation on your joint venture, you must not waste any time designing the Templates. You can use the Templates from the above collection to impress and motivate your stakeholders. Download these premium PPT Slides through our monthly, semi-annual, annual, annual + custom design subscriptions here .

You can also get access to some really amazing business agreement templates  here !

FAQs on Joint Venture

What is a joint venture.

Simply put, a joint venture is one where two or more businesses work together on a specific project or a larger goal. The point of having a joint venture is that it is possible to pool the expertise of multiple resources, their knowledge, and their working style to achieve larger business objectives. These goals may not be achievable when each of these companies works singularly. In a joint venture, the businesses share the project's profits, risks, and losses. Companies often use joint ventures to enter new markets, launch new products or services, or share costs and risks associated with a project. These ventures may be temporary or long-term and can involve businesses of different sizes and industries.

What are the four types of joint ventures?

There are primarily four main types of joint ventures in which businesses may participate:

• An Equity Joint Venture involves companies sharing their resources to create a new entity with collective ownership.
• Businesses sign a contract to collaborate on a specific project or goal in a Contractual Joint Venture.
• A Cooperative Joint Venture sees companies working together to accomplish a mutual objective while still maintaining their individual identities.
• Lastly, a Joint Marketing Venture involves businesses teaming up to advertise and promote their products or services to a larger audience, increasing sales.

Every joint venture type has distinct advantages and disadvantages, so businesses should thoroughly evaluate their objectives and capabilities before committing to any particular type of joint venture.

How can a joint venture be formed?

A joint venture, also known as JV, can be termed as an agreement between two or more parties to establish a distinct legal entity for a specific purpose or project. To form a joint venture, there are various steps that need to be taken.

Firstly, it is necessary to identify potential partners with complementary expertise, skills, and resources to achieve the desired outcome. Next, the objectives and scope of the joint venture must be established, including identifying the project's goals, timelines, resources, and potential risks.

Following this, a legal agreement should be created, which outlines the terms and conditions of the JV, such as the ownership structure, profit-sharing, decision-making process, and exit strategy. Once the legal agreement is in place, the partners should allocate resources according to their contribution to the project, which includes financial, human, and material resources.

Finally, the joint venture can be launched, and the project plan can be implemented. To ensure success, effective communication, and collaboration are essential. It is important to note that forming a joint venture can be a complex process that requires careful planning.

Related posts:

• How to Design the Perfect Service Launch Presentation [Custom Launch Deck Included]
• Quarterly Business Review Presentation: All the Essential Slides You Need in Your Deck
• [Updated 2023] How to Design The Perfect Product Launch Presentation [Best Templates Included]
• 99% of the Pitches Fail! Find Out What Makes Any Startup a Success

Liked this blog? Please recommend us

Top 7 Financial Chart Templates with Samples and Examples

12 Best Slides to Include In Your Salesforce Company Profile (Free PDF & PPT Attached)

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

Digital revolution powerpoint presentation slides

Sales funnel results presentation layouts

3d men joinning circular jigsaw puzzles ppt graphics icons

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Future plan powerpoint template slide

Project Management Team Powerpoint Presentation Slides

Brand marketing powerpoint presentation slides

Launching a new service powerpoint presentation with slides go to market

Agenda powerpoint slide show

Four key metrics donut chart with percentage

Engineering and technology ppt inspiration example introduction continuous process improvement

Meet our team representing in circular format

Joint Venture and Partnership Development Presentation Templates

A Joint Venture and Partnership Development Presentation communicates the objectives, benefits, terms, and expectations of the partnership or joint venture to relevant stakeholders. This presentation is important as it facilitates transparency and alignment among the parties involved.

Our presentation templates aim to help you present the details of a proposed collaboration effectively to ensure that all stakeholders are on the same page.

Download our editable joint venture and partnership development ppt templates

Template 1: Joint Venture and Partnership Development

Our compelling storylines are the secret of instant presentation building. Try yourself for free. Simply download and use the template or build one yourself with Prezent's free trial.

Tips to create an effective joint venture and partnership development presentation

Objective and Vision

Clearly articulate the objectives and vision of the joint venture or partnership. Also, demonstrate how the new proposition aligns with your company's overarching goals.

Thorough Analysis

Provide a comprehensive analysis of the market landscape and identify any existing gaps or opportunities that the collaboration aims to address.

Regulatory Mandates

Highlight any regulatory requirements that need to be adhered to, along with their timelines for compliance.

Visualize Data

Utilize visual aids such as graphs and charts to present key data points effectively, including cost estimates, forecast data, and other relevant information.

Success Measurement

Define clear success criteria and milestones that will be used to measure the effectiveness and progress of the joint venture or partnership.

Presenting a partnership proposal involves addressing various aspects such as shared objectives, risk assessment, analysis, and forecasting. It's crucial to structure the presentation effectively to ensure clarity and facilitate decision-making. Explore our comprehensive guide on Partnership Proposal Presentations , covering essential aspects such as structuring, frequently asked questions, and other key considerations, to help you craft compelling and effective presentations.

Create impactful joint venture and partnership development presentations with ease

Auto-Generator

Streamline your slide creation

Say goodbye to the drudgery of slide-making. Our Auto-Generator uses cutting-edge AI to craft your presentation, aligning with your brand's voice and freeing you from tedious manual work.

Explore Auto-Generator

Story Builder

Design with intuition

Whether you're a design veteran or a presentation novice, Story Builder is your ally. It's designed to be user-friendly, helping you to weave compelling narratives into your slides effortlessly.

Explore Story Builder

Slide Library

Diverse designs at your fingertips

Our Slide Library is a treasure trove of templates. It's all about choices and clarity, ensuring your message shines through, no matter the audience.

Explore Slide Library

Enable seamless collaboration and brand consistency

Best Practice Examples

Learn from the masters

Tap into a wealth of pre-crafted slides. These examples are not just slides; they're lessons in effective communication, ready for you to adapt and impress.

Explore Best Practice Examples

Presentation Exchange

Collaborate without boundaries

Our Presentation Exchange breaks down the barriers of distance and time. Share insights, work together, and watch as your collective ideas take flight.

Explore Presentation Exchange

Brand Exchange

Unified branding made simple

Consistency is key, and Brand Exchange is your lock. Share logos, color schemes, and more, ensuring your brand's voice is harmonious across all fronts.

Explore Brand Exchange

Learn and grow with expert guidance

From novice to pro

Our courses, led by industry experts, are your path to mastering business communication. Interactive, engaging, and comprehensive, they're designed to elevate your business communication skills.

Explore Courses

Fingerprints

Personalized communication insights

Discover your communication style with Fingerprints. It's about understanding and being understood, ensuring your message resonates perfectly with your audience.

Explore Fingerprints

Do's and Don'ts

Navigate the nuances

The art of communication is in the details. Our Do's and Don'ts guide you through the intricacies of presentation design and delivery, helping you to connect and captivate.

Explore Do’s and Don’ts

Transform your joint venture and partnership development ppt content into masterpieces

Slide Redesign

Instant aesthetic upgrade

Refresh your slides with a click. Our Redesign feature transforms your content into visually stunning presentations that speak volumes.

Explore Slide Redesign

Compliance Checker

Brand alignment with ease:

Our Compliance Checker is your guardian, ensuring every slide reflects your brand's standards. It's about maintaining a consistent, professional image effortlessly.

Explore Compliance Checker

Harmonize your content

Merge text, images, charts, and videos into a cohesive presentation. Synthesize is about creating a unified narrative that tells your story with clarity and impact.

Explore Synthesize

Related Presentations

Related slides, frequently asked questions.

Certainly! Access the presentation decks on Prezent's platform and seamlessly customize templates to meet your specific requirements. Tailor the text to incorporate company-specific information while adjusting language and tone to align with your unique company culture. Modify the slide deck by adding or removing slides to match the agenda of your meeting. Utilize the Slide Library to effortlessly replace existing slides with ones better suited to your content. Enhance your presentation further by aligning it with your brand using a simple, user-friendly interface. With just a few clicks, you can brand-align your presentation for a polished and professional look.

You have the flexibility to edit these Joint Venture and Partnership Development Presentation templates using either PowerPoint or Google Slides. Our templates are fully compatible with both platforms, offering you the convenience and versatility to customize the content and overall presentation according to your preferences. Whether you prefer the functionality of PowerPoint or the collaborative features of Google Slides, you can seamlessly edit and adapt the templates to meet your specific needs.

To access our resources, start by registering for a free trial with Prezent. Once our experts review your details, you'll receive your login credentials via the email address provided during registration. Your Prezent credentials open the door to a diverse collection of over 35,000 storyline-based decks, best practices-based presentation templates, and more for you to explore. Download the templates of your choice and easily customize them to suit your specific needs.

With Prezent, you get your exclusive dashboard which is specifically created to feature your logos and brand colors. All your brand elements are seamlessly incorporated and tailored to reflect your unique brand identity. The brand compliance feature empowers users to effortlessly maintain a consistent and professional appearance, ensuring a seamless alignment with the brand identity without any hassle.

Yes, the Prezent platform is designed with in-built storylines that cater to a wide range of presentation needs. Whether you're creating a business pitch, a project update, a sales presentation, or any other type of presentation, Prezent provides a diverse library of storylines for varied business communication needs. These pre-designed storylines help streamline the content creation process and ensure that your presentations are not only visually appealing but also effectively convey your message.Yes, the Prezent platform is designed with in-built storylines that cater to a wide range of presentation needs.

Get the latest from Prezent community

Join thousands of subscribers who receive our best practices on communication, storytelling, presentation design, and more. New tips weekly. (No spam, we promise!)

Home Collections Infographics List Infographics Joint Venture PowerPoint Presentation

Joint Venture PowerPoint Presentation and Google Slides

Best Joint Venture PowerPoint Template Presentation

Joint venture PowerPoint presentations are used by large companies and innovative small businesses as a way of presenting their offers to potential clients. Use this template to create an alluring PowerPoint presentation and excite your audiences.

About this template

This joint venture PowerPoint presentation template is a pre-designed slide. It is a four-noded template in which you can present and organize your data neatly. You have the best customizing features to create a tremendous presentation in a minute. The tables and columns are added with all data that are needed for your presentation, so download and impress now.

Features of the template:

• 100 % customizable slides and easy to download. 
• The Slides are available in different nodes & colors.
• This slide is contained in 16:9 and 4:3 format.
• It is easy to change the slide colors quickly.
• It is a well-crafted template with an instant download facility.
• A professional-looking template with elegant visuals
• The best PowerPoint theme template.
• List Infographics
• Joint Venture
• Joint Venture Oppurtunities
• Joint Venture Diagram
• Joint Venture Infographics
• Joint Venture Model
• Google Slides

Infographics

2696+ Templates

643+ Templates

581+ Templates

Stage / Stairs

829+ Templates

90+ Templates

4983+ Templates

183+ Templates

277+ Templates

203+ Templates

2756+ Templates

You May Also Like These PowerPoint Templates

• AI Content Shield
• AI KW Research
• AI Assistant
• SEO Optimizer
• AI KW Clustering
• Customer reviews
• The NLO Revolution
• Press Center
• Help Center
• Content Resources
• Facebook Group

How to Write a Joint Venture Proposal: 5 Effective Tips

Table of Contents

Joint venture proposals can be crucial to your business plan. It allows you to bring together two or more parties for a common purpose and benefit from each other’s expertise. To craft an effective proposal, know what should be included in it and have a clear idea of the goals you want to achieve. This guide on How to Write a Joint Venture Proposal provides practical tips to help you craft a compelling proposal.

What Is a Joint Venture Proposal?

A joint venture proposal is an agreement between multiple business entities to combine their resources and finances to form a new enterprise . This arrangement includes parties sharing the risk, costs, and profits associated with the venture. It also outlines the responsibilities, duties, and obligations of each party. It’s essential to create a clear and comprehensive joint venture proposal that covers all areas related to the venture. This helps you ensure successful execution and satisfaction for all involved.

Why Is a Joint Venture Proposal Important?

A joint venture proposal is important because it outlines the intentions of the businesses planning to combine their resources to achieve a common goal. This proposal should include an analysis of how each business will benefit from the collaboration. It must also discuss what services or products will be provided by each party and any legal considerations that may arise during the process. It serves as a blueprint for the project, which both parties can refer back to when making decisions regarding the execution of the venture. Besides, a joint venture proposal clarifies how funds will be distributed between partners. Thus, it allows all participants to have equitable ownership of the resulting venture. Overall, having such a document ensures smooth collaboration and increases the likelihood of success for the joint venture.

How to Write a Joint Venture Proposal: 5 Key Tips

Below are five essential tips that will help you learn how to write a joint venture proposal that yields positive results:

Research on Your Prospective Partner

Before writing the joint venture proposal, it is vital to research your intended partner. This includes understanding their business, operations, and goals. Doing thorough research helps you better understand what they seek in a joint venture. It will help you craft an appropriate proposal that can be more readily accepted.

Describe the Intended Results

It is essential to explain the expected outcomes of the proposed joint venture. This should include the financial goals, resources available, timeline, and scope of the project. Providing this information upfront will help both parties better understand the potential benefits of working together.

List the Main Details

The proposal should provide clear details about the responsibilities of each party involved in the venture. It must outline any regulations or legal requirements related to the agreement. It should also list any conditions or restrictions that either party needs to agree upon before entering into a contract.

Define the Budget and Action Plans

Describe all steps required to successfully complete the project, including tasks and responsibilities. Also, provide an estimated budget for each stage of the project so that both parties know the costs involved.

Anticipate Questions

Finally, anticipate questions that may arise during the negotiation process and answer them in the proposal. By providing clear answers to potential issues ahead of time, you can expedite the conversation and foster a successful outcome.

Final Words

A joint venture proposal is an important document that outlines the potential of a business partnership. It can help companies use their resources to reach new markets , develop new products and services, or expand their operations. Writing a joint venture proposal requires research, outlining essential details, action plans, and budgets, and anticipating questions. Following the tips outlined, you can create a solid proposal to help your company find the right partner for its objectives.

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

Explore All Proposal Generator Articles

Creative terms and conditions agreement in business proposal.

In business, proposals are essential for securing contracts and agreements with clients. However, a proposal is only complete with terms…

• Proposal Generator

Free guide to a statement of proposal sample

A statement of proposal is a document that outlines a proposed project or initiative in detail. It is typically used…

Free Proposal Letter for Training and Development for a Head Start

Training and development are essential to improve employees’ skills, knowledge, and productivity. A well-crafted training proposal can help an organization…

Detailed Guide to Free HR Consulting Proposal

HR consulting is an essential service for businesses of all sizes. HR consultants provide expert guidance to organizations on various…

Key Guide to Better Remote Work Proposal

The rise of remote work has been a significant trend in the business world over the last few years. With…

Guide to Free E-Commerce Proposal Template

E-commerce has become one of the most popular ways of doing business recently. With the increasing number of people using…

Negotiating a better joint venture

In the fast-paced world of deal making, joint ventures (JVs) are a conundrum. Slow in the making, often with complicated structures and shared management teams, they seem out of place in a volatile era marked by buzzwords that hype agility and nimble strategic moves. Yet there they are, more than 1,500 JV deals completed annually over the past ten years, including around 10 percent of them characterized as large JVs, with an initial value of more than $250 million. Their volume seems likely to endure—more than two-thirds of executives surveyed in 2014 reported that they expect to do more JVs in the future. 1 1. Eileen Kelly Rinaudo and Robert Uhlaner, “ Joint ventures on the rise ,” McKinsey on Finance , November 2014. This McKinsey Global Survey was in the field from March 11 to March 21, 2014, and garnered 1,263 responses from C-level and senior executives representing the full range of regions, industries, company sizes, and functional specialties. Of them, 982 executives had personal experience leading or managing joint ventures

But JVs are not always embraced without reservation. In fact, we encounter many executives who express significant concerns, often when they’re wrapped up in the uncertainty of JV negotiations. Given how much longer those negotiations can last compared to traditional acquisitions, this is both understandable and alarming. One global conglomerate we’ve observed advises its US-based headquarters to expect JV negotiations to last three to six times longer than M&A negotiations. That’s a long time for doubt to creep in, particularly if the competitive context justifying a venture might shift in the meantime.

How can executives build healthier partner relationships to give future JVs the best odds of success? Our review of a series of long-standing partnerships—supported by our 2014 survey and a series of structured interviews with JV partners 2 2. We interviewed 45 joint-venture managers. —identified three principles that made a difference in deal negotiations: investing more time and effort up front, working harder to cultivate and sustain the JV relationship, and standardizing key processes and learning mechanisms.

Invest more up front

As business negotiations go, JVs are marathons, not sprints. In their rush to complete a deal quickly and begin capturing value, inexperienced JV planners neglect the foundational steps of planning. Commonly, they jump too quickly into high-stakes discussions on specific deal terms such as how ownership is divided, who nominates key leaders, and what intellectual-property protections will be put in place. What they leave aside is an explicit understanding of how well those terms match the objectives of the deal.

In fact, most companies need to invest more time in the early phases of deal planning and preparing for negotiations. Our research has shown that many planners focus more than half of their negotiating time hammering out specific deal terms that should be addressed late in negotiations and only 20 percent of their time on the JV structure and business model, which should be addressed first. In contrast, those same planners believe that the phases of the process devoted to internal alignment and the business model represent 60 percent of the total value at risk, while the phase devoted to deal terms accounts for only 10 percent (Exhibit 1).

That disconnect between time spent and value derived reinforces damaging habits. Deal terms are important, but they are difficult to correctly perceive and negotiate without a clear articulation of broader issues including deal objectives, market considerations, and walk-away points. Negotiators who lack that foundation are poorly prepared to discuss deal terms. The cost can often be measured in time. For example, negotiations slow considerably when negotiators fixate on specific, preconceived deal terms even though other solutions could also work or when they belabor negotiations on all possible considerations instead of covering the most likely ones. Cost can also be measured by long-term damage to the JV. When negotiators fail to examine a potential partner’s deeper motives or to consider the regulatory landscape fully, companies can end up with deal terms that don’t adequately govern an agreement—and that can carry substantial costs.

For example, after a European company formed a JV to manufacture equipment in China, it unexpectedly learned that local regulators would compel it to transfer a larger equity stake to its Chinese partner, which threatened the deal’s feasibility. If the European company’s negotiators had conducted a more rigorous up-front process, they likely would have discovered that requirement. Instead, the venture’s launch was delayed, and the European company’s governance rights were diminished—consequences that might have been avoided.

Companies can avoid or at least mitigate such problems by investing more time in the early stages of planning. One US agricultural company requires extensive up-front business planning to confirm internal alignment and identify the motives of each counterparty. Planners there credit their rigorous preparation phase for making negotiations smoother.

Would you like to learn more about our Strategy & Corporate Finance Practice ?

That’s consistent with our experience. We’ve found that companies benefit when they set up internal checks and balances to ensure that these foundational issues are articulated and confirmed internally before negotiations with partners begin in earnest. They should also engage potential partners in early discussions to confirm that they all agree on the goals of a joint endeavor, on their expectations of changes in the market over time, and on how the JV should plan to adapt as the market evolves. One global energy company learned this lesson the hard way when its partners in an existing JV objected that a new venture completed by the energy company would, over time, hurt the existing JV’s business prospects. As a result, a foreign court ordered the energy company to pay extensive damages for an initiative that never even launched.

For most companies, a good starting point is for planners to force a tough and thorough self-review to identify their own objectives, goals, and—even more difficult—their strengths and weaknesses as JV partners. Where possible, they should also convince a potential partner’s leadership to do the same, lest they get mired in internal misconceptions in the future.

Cultivate a trusting relationship

Negotiating JVs differs from negotiating mergers or acquisitions because the end goal is a sustainable, ongoing, trust-based relationship, not a one-time deal. Not surprisingly, a significant portion of our survey’s respondents indicated that the level of honesty and trust between the parent companies had a significant impact on the partnership’s overall success (Exhibit 2).

Positive initial meetings are important to establishing trust, but planners need to do more. Regular and ongoing business and social interactions with critical parent leadership-team members, including management off-site events and frequent, engaged board meetings, can help maintain trust and communication, reveal the breadth of motivating factors that influence a partner, and nurture a strong relationship even after negotiations conclude. As one energy executive observed, it is frequently only after many hours together in a “smoky room,” spread over the days, weeks, and months of negotiation, that the true motives of potential partners become clear. Understanding partner motives and securing mutual commitment to a deal beyond its financials will help ensure that all parties share the same expectations of ongoing JV operations.

In our interviews, numerous executives expressed concern about nontraditional objectives that may be motivating potential JV partners. These include sharing capital to upgrade facilities, achieving a relationship with a previously inaccessible third party, or increasing employment opportunities for a specific region. Such objectives often work to the disadvantage of a JV partner, as managers at a global conglomerate discovered. They negotiated a deal with a regional player that included transferring core technology into the JV in order to qualify for lucrative government contracts. Conglomerate executives at first applauded the deal, though the planners expressed concern that their partner’s motives might not be consistent at all levels of its organization. The venture subsequently reached a tipping point when, during an industry conference, the regional company’s senior executives boasted that they would start selling products based on the global conglomerate’s technology, but at a fraction of the price. This forced deal teams on both sides to revisit the partnership’s objectives to reaffirm the relationship’s durability.

Negotiators who understand a partner’s motivation, business needs, and capabilities well before closing a deal will be better positioned to establish a strong, candid relationship with shared, explicit expectations. Thorough research can highlight things that wouldn’t necessarily surface during negotiations but that could affect the partner’s involvement with the JV. For example, one energy company avoided a potential misstep after scrutinizing a partner company’s relationships with distributors before coinvesting in a local manufacturing operation. That analysis made it clear that the partner company’s CEO intended to use his own distribution company to exclusively channel products into a lucrative sales territory. After the energy company escalated its concerns, its partner moved ahead with the venture anyway but did not use the CEO’s distribution company.

How the best acquirers excel at integration

Standardize processes and learning mechanisms.

Unlike dedicated M&A teams that develop negotiating skills over multiple deals, JV teams tend to change from deal to deal, often due to shifting team-member roles and responsibilities or low JV deal flow. That creates little institutional memory around key processes, approaches for managing critical issues, and even partnership-specific negotiating skills. All of these things can be proactively managed, even if deal terms cannot.

Yet our survey of JV practitioners found that less than a quarter have a JV design-and implementation playbook—the kind of simple tool that most companies with M&A programs have had for years to reduce strain for the internal team and to ease discussions with potential partners. Without that kind of institutional knowledge, inexperienced teams often see JV negotiations as zero-sum games; they rigidly calculate wins and losses on every negotiating point. That leaves them with little flexibility to appreciate the needs of a partner interested in entering into a commercial agreement or reaching consensus on the terms of a mutually beneficial JV. The result can be a weak or ineffective deal. For example, one global company faced challenges investing in a regional JV because it focused too emphatically on legalistic deal terms to protect its own interests. That created an adversarial tone in the negotiations and undermined the collaboration needed to allow both companies and the JV to succeed. It also prolonged the process, to the frustration of the JV partners.

For most JVs, long-term success also requires an agreement process that is transparent and follows patterns of conversation established from the outset. At its core, this simply means communicating with all parties about how, when, and what to communicate. The eventual pattern of communication may vary from deal to deal, and not all parties will like it. That’s OK. Just laying it out keeps expectations aligned, focuses conversations, and reduces time-consuming delays. Otherwise, internal approval processes can cause bottlenecks, and not having the right people in the room can bring momentum to a standstill.

Standardized processes are especially helpful once a deal is under way, when adapting and restructuring can strengthen a partnership and increase financial returns—as long as the relationship is strong and the process has clearly allowed for adaptation. One aerospace partnership ensured all parties continued to agree on the goals of the JV by contractually committing to a standardized annual evaluation process. This included valuing each partner’s contributions to ensure that the risks and rewards for each partner remain consistent with the original objectives of the deal. In the event that one partner’s contributions did not match the other’s, the terms of the agreement required the lagging partner to increase its contribution. Together with a management team in which the CEO position is swapped on a regular basis, both partners have been able to maintain a decades-long relationship.

With so many companies planning to increase their JV activity in coming years, it’s worth investing the time in negotiations and planning to ensure the value of these ventures.

Eileen Kelly Rinaudo is a senior expert in McKinsey’s New York office, where Jason Roswig is a consultant.

Explore a career with us

Related articles.

Joint ventures on the rise

Avoiding blind spots in your next joint venture

How M&A practitioners enable their success

• Search Search Please fill out this field.

What Is a Joint Venture (JV)?

• Understanding Joint Ventures

How to Set Up a Joint Venture

• Pros and Cons
• Paying Taxes
• Partnerships and Consortiums

The Bottom Line

• Types of Corporations

Joint Venture (JV): What Is It, and Why Do Companies Form One?

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Each of the participants in a joint venture is responsible for profits , losses, and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.

Key Takeaways

• In a joint venture (JV), two or more businesses decide to combine their resources in order to fulfill an enumerated goal.
• They are a partnership in the colloquial sense of the word, but can take on any legal structure.
• A common use of JVs is to partner up with a local business to enter a foreign market.

Sydney Burns / Investopedia

Understanding a Joint Venture (JV)

Although a joint venture is a partnership in the colloquial sense of the word, it can be formed using any legal structure—corporations, partnerships, limited liability companies (LLCs) , and other business entities can all be employed.

Despite the fact that the purpose of a JV is typically for production or research, one can also be formed for a continuing purpose. JVs can combine large and small companies to take on one or several projects and deals.

Here are the four main reasons why companies form JVs.

1. To Leverage Resources

A joint venture can take advantage of the combined resources of both companies to achieve the goal of the venture. One company might have a well-established manufacturing process, while the other company might have superior distribution channels.

2. To Reduce Costs

By using economies of scale , both companies in the joint venture can leverage their production at a lower per-unit cost than they would separately. This is particularly appropriate with technology advances that are costly to implement. Other cost savings as a result of a JV can include sharing advertising or labor costs.

3. To Combine Expertise

Two companies or parties forming a joint venture might each have different backgrounds, skill sets, or expertise. When these are combined through a JV, each company can benefit from the other’s talent.

4. To Enter Foreign Markets

Another common use of joint ventures is to partner with a local business to enter a foreign market. A company that wants to expand its distribution network to new countries can enter into a JV agreement to supply products to a local business, thus benefiting from an already-existing distribution network. Some countries have restrictions on foreigners entering their market, making a JV with a local entity almost the only way to do business in the country.

Image by Sabrina Jiang © Investopedia 2020

Regardless of the joint venture structure, the most important document will be the agreement that sets out all of the rights and obligations of each party to the venture. The objectives, the initial contributions of the parties, the day-to-day operations, the right to the profits, and the responsibility for losses are all set out in the JV agreement. It is important to draft it with care to avoid risking litigation down the road.

Pros and Cons of a Joint Venture

A joint venture gives each party the opportunity to exploit a new business opportunity without bearing all of the cost and risk. Joint ventures, by nature, are riskier than “business as usual,” and coopetition and sharing the risk is a wise move.

If the right participants are involved, the joint venture also starts out with a broader base of knowledge and pool of talent than any one party possesses on its own. For example, a joint entertainment venture set up by an animation studio and a streaming content provider can get off the ground quicker—and probably with a better chance of success—than either participant could alone.

Embarking on a joint venture requires relinquishing a degree of control. The vital decisions are being made by two or more parties.

The companies involved must go into the project with the same goals and an equal degree of commitment.

Extreme differences between the participants’ company cultures and management styles can be a barrier to success. Will the executives of an animation studio be able to communicate in the same language as the executives of a digital streaming giant? They might, or they might line up in opposing camps.

Setting up a joint venture multiplies the number of management teams involved. If one party undergoes a significant change in its business structure or executive team, the joint venture can get lost in the shuffle.

Paying Taxes on a Joint Venture

When forming a joint venture, the most common thing the two parties can do is to set up a new entity. As the JV itself isn’t recognized by the Internal Revenue Service (IRS), the business form between the two parties helps determine how taxes are paid.

As the JV is a separate entity, it will pay taxes as any other business or corporation does. However, if it chooses to operate as an LLC, its profits and losses would pass through to the owners’ personal tax returns, as with any other LLC.

The JV agreement will spell out how profits or losses are taxed. If the agreement is merely a contractual relationship between the two parties, then it will determine how the tax is divided up between them.

Joint Ventures vs. Partnerships and Consortiums

A joint venture is not a partnership. That term is reserved for a single business entity that is formed by two or more people. JVs join two or more different entities into a new one, which may or may not be a partnership.

The term “ consortium ” is sometimes used to describe a JV, and there are similarities. However, a consortium is a more informal agreement than a JV. For example, a consortium of travel agencies can negotiate and give members special rates on hotels and airfares, but it does not create a whole new entity. The agencies still pursue their own businesses independently. In a JV, they would share ownership of the created entity, jointly responsible for its risks, profits, losses, and governance.

Examples of Joint Ventures (JVs)

Once the joint venture has reached its goal, it can be liquidated like any other business or sold. For example, in 2016, Microsoft Corp. sold its 50% stake in Caradigm, a JV it had created in 2011 with General Electric Co.

The JV was established to integrate Microsoft’s Amalga enterprise healthcare data and intelligence system, along with a variety of technologies from GE HealthCare. Microsoft has now sold its stake to GE, effectively ending the JV. GE has become the sole owner of the company and is free to carry on the business as it pleases.

Sony Ericsson is another famous example of a JV between two large companies. In this case, they partnered in the early 2000s with the aim of being a world leader in mobile phones. After several years of operating as a JV, the venture eventually became solely owned by Sony.

Why Would a Firm Enter Into a Joint Venture?

There are many reasons to join forces with another company on a temporary basis, including for purposes of expansion, development of new products, and entering new markets (particularly overseas).

Joint ventures are a common method of combining the business prowess, industry expertise, and personnel of two otherwise unrelated companies. This type of partnership allows each participating company an opportunity to scale its resources to complete a specific project or goal while reducing total cost and spreading out the risks and liabilities inherent to the task.

What Are the Primary Advantages of Forming a Joint Venture?

A joint venture affords each party access to the resources of the other participant(s) without having to spend excessive amounts of capital. Each company is able to maintain its own identity and can easily return to normal business operations once the JV is complete. JVs also provide the benefit of shared risk.

What Are Some Disadvantages of Forming a Joint Venture?

Joint venture contracts commonly limit the outside activities of participant companies while the project is in progress. Each company involved in a JV may be required to sign exclusivity agreements or a  non-compete agreement  that affects current relationships with  vendors  or other business contacts.

The contract under which a JV is created may also expose each company to liability inherent to a partnership unless a separate business entity is established for the JV. Furthermore, while companies participating in a JV share control, work activities and use of resources are not always divided equally.

Does a Joint Venture Need an Exit Strategy?

A joint venture is intended to meet a particular project with specific goals, so it ends when the project is complete. An exit strategy is important, as it provides a clear path on how to dissolve the joint business, avoiding drawn-out discussions, costly legal battles, unfair practices, negative impacts on customers, and controlling for any possible financial loss.

In most JVs, an exit strategy can come in three different forms: sale of the new business, a spinoff of operations, or employee ownership. Each exit strategy offers different advantages to partners in the JV, as well as the potential for conflict.

A joint venture between companies can open the way for expansion into a new line of business by each participant at a relatively modest cost. In fact, it sounds ideal: Each company contributes its own expertise, but the cost of the venture is split among them.

It’s only ideal, though, if the companies have a shared vision and an equal commitment to the success of the joint venture.

Internal Revenue Service. “ Tax Information for Partnerships .”

Microsoft. “ Microsoft and GE Healthcare Complete Joint Venture Agreement .”

Business Wire. “ Caradigm Names Neal Singh CEO .”

GE HealthCare. “ GE, Microsoft to Launch Joint Venture Aimed at Global Healthcare System Transformation .”

Sony. “ Sony and Ericsson Complete Joint Venture Agreement .”

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Research: Joint Ventures that Keep Evolving Perform Better

• Shishir Bhargava
• James Bamford

Market leaders maximize returns by actively shaping — and reshaping — their partnership portfolios.

Partnerships and joint ventures are an important source of revenue and innovation for many large companies, particularly in areas of emerging technology. New research shows that companies that restructure a large percentage of partnerships show better financial returns. Companies creating new partnerships should take steps to allow for future restructuring.

Successful companies actively manage their businesses through periods of economic growth, downturn, and recovery. They do so by innovating, making strategic shifts, rewiring existing operations, reallocating resources, entering new business lines, and restructuring existing ones.

• SB Shishir Bhargava is a Senior Director at Ankura , and a core member of the firm’s joint venture and partnership practice. He serves clients on joint venture transactions and governance matters, with a focus on the energy, industrial, and automotive sectors.
• JB James Bamford ( [email protected] ) is a senior managing director at Ankura, where he serves a global client base across industries on joint venture and partnership issues. He previously founded Water Street Partners and co-led the joint venture and alliance practice at McKinsey & Company.

Partner Center