Joint venture lawyers

A joint venture (JV) is one of the most flexible tools available to businesses that want to grow, enter new markets, or combine strengths with another organisation – without going through a full merger or acquisition. 

A joint venture lets two or more businesses share risk, resources and reward on a defined project or over the longer term. Although without a properly drafted agreement it can just as easily become a source of costly and damaging disputes.

What is a joint venture?

An arrangement between two or more parties (individuals, companies, or a mix of both)  who agree to work together on a specific business activity while remaining, in most respects, independent of one another. That might mean developing a new product, entering a new geographic market, bidding for a contract too large for either party alone, or pooling complementary expertise, technology or capital.

Each party contributes something specific (i.e. cash, assets, expertise, contacts, intellectual property, or a licence) to a clearly defined venture, and the terms of that contribution, and how profits, losses, control and risk are shared, are set out in the joint venture agreement.

How do our corporate team help?

Put simply, Joint ventures often begin with strong personal relationships and a shared sense of opportunity, which can lead parties to under-invest in the legal documentation, particularly at an early stage. Problems then tend to surface later, when circumstances change: one party wants to exit, the business needs further funding, the parties disagree over strategy, or a dispute over IP or clients arises. Without clear, enforceable provisions in place from the outset, resolving these situations can be slow, expensive and damaging to the underlying commercial relationship — sometimes threatening the survival of the business itself.