Known as a “JV” – a business entity created by two or more parties.
Ownership, returns and risks alike are shared. JV’s are pursued for many reasons including:
– Access to new markets;
– To build scale through combining resources;
– To share the risks of investment; and
– To access mutual skills.
JV’s may be incorporated or unincorporated, be ongoing or for a defined period or purpose. It is critical that mutual intent is clarified and documented so this is where advice is helpful.