![]() Plan on performing the same due diligence that you would for a merger or acquisition. Once you find a likely candidate, spend time "dating," e.g., meeting for lunches, dinners and golf games to get acquainted. Attend social functions, Chamber of Commerce meetings and local chapter meetings of professional organizations. A JV depends so much on personal chemistry that searching for a partner is not unlike looking for a mate. Many small business development centers have consultants who can make introductions. For example, one partner might have more technical expertise, while the other knows the market or is closely connected to the clientele.įinding a partner is mostly a matter of plugging into the right network. JV partners should complement each other's skills. While the World Trade Organization may eventually forbid mandatory JVs, many companies new to a foreign market find they need partners who know the cultural and political terrain. ![]() Some emerging market countries require that foreign companies set up JVs as a way of creating employment, training and technology transfers. In the event the partners fail to win the contract, they might still pursue other projects together. Companies involved in infrastructure projects often set up a JV before bidding on a contract, so they can market the venture’s collective strengths. Or you might form a JV to conduct research and development to reach the prototype stage. You might have a prototype for a product already but can’t afford to hire the technical experts needed to refine it. Which comes first: the opportunity to expand, or the JV that will make it possible? The situation varies.
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