As there are numerous good reasons both business wise and financial, to create a joint venture with a company that has a great complementary capabilities and resources, such as distribution channels, new technologies or finance, joint ventures are becoming an increasingly popular way for different companies to build strategic alliances.
In a Joint venture, two or more parent companies agrees to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared managerial power.
But before going into a joint venture, you should consider something first. We have gathered some information on what are the most important things to think about before going into a joint venture, here is the list:
Before going into a joint venture, be sure to first screen prospective partners. Make sure that you are on the same level of the industry.
Also make a joint development of a detailed business plan and short listing a set of prospective partners based on their contribution to the development of the plans.
Check the credentials of the other party by doing interviews and research. Check their previous business and also...
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