Joint ventures (JVs) are very common across Asia, and in many cases they’re the entry vehicle of choice for companies looking to expand into the region. Aligning with a strong local partner is attractive both in limiting the initial setup cost and providing a fast start by leveraging the outside partner’s existing infrastructure and contact base. While there are numerous instances of very successful JVs, there are also regrettably increasing examples of JVs that have ended in very public and bitter disputes. The keys to a successful joint venture are twofold: (a) find the right partner and (b) diligently negotiate the joint venture agreement (JVA), as this governs the rules of the relationship long after the initial principals have departed their respective companies.
We can help you with the following services:
We can support you in your negotiation of the joint venture agreement and ensure that the final document contains all the necessary provisions to protect your interests. You will benefit from our experiences and understanding of what has and has not worked across Asia over the past 15 20 years.
Should you have an existing joint venture, we can help you review the existing documentation and suggest ways where it may be strengthened to improve the overall governance of the entity. With the introduction of Foreign Corrupt Practice legislation throughout the Western World foreign partners are now often liable for the actions of their joint venture partners even in situations where they don’t exercise day-to-day control. As a minimum, you should look to understand your potential exposure in this key area.
Attending quarterly board meeting can place huge demands on your travel schedule, but alas, not attending has its own set of potentially negative consequences. If you need a commercially astute executive to represent your interest on the board then we can discuss the possibility of our taking a board seat on your behalf. Apart from our physical presence, you (and the JV) will also benefit from our extensive business experience across the region.