A joint venture is when two or more businesses pool their resources and expertise to achieve a particular goal. They also share the risks and rewards of the enterprise.
Businesses may form a joint venture for many reasons, including business expansion, new product development or moving into new markets, particularly overseas.
Forming a joint venture can have unique benefits for some businesses. A joint venture could give you:
- more resources
- greater capacity
- increased technical expertise
- access to established markets and distribution channels
Entering into a joint venture is a major decision. This guide describes the main types of joint venture agreements, and the benefits and risks of such strategic partnerships. It explains how to plan your joint venture relationship and carefully create a joint venture agreement.
You can use our joint venture checklist to help you find the right partner, decide on a legal structure and plan a sound exit strategy for when your partnership ends.