Joint Venture (JV) is the ideal option when two or more entities want to share their unique strengths, synergies and capabilities in certain geographical areas or business functions, but do not want to lose their own identity. In this new entity, parties to Joint venture bring/transfer their domain knowledge /expertise, and simultaneously continue to run their own businesses. Our professionals are adept at helping business owners navigate through various corporate and product strategies, with one another, to create clear benefits for both joint venture participants.
At MCG, we help our clients master the various aspects of a successful joint venture in India & Abroad.
–Strategy
-It’s important to review your business strategy before committing to a joint venture. You need to ask yourself, ‘Is JV the right move for me? What value addition can I get from the venture? Which source of funding for the JV? What is the impact of my present business and present relations? We help you answering all these questions by thoroughly analysing your business, your strategic objectives and future plans. We advise you on viable structures, funding options, regulatory compliances and tax implications. We help you set up the model to create value for the parties by helping you to anticipate and address problems proactively, rather than react. This activity is done through a customised MCG ‘buckle up’ report.
Target identification
The ideal partner in a joint venture is one that has resources, skills and assets that complement your own. The joint venture has to work contractually, but there should also be a good fit between the cultures of the two organisations fitting together like pieces of a jigsaw puzzle. Bringing a partner is a complex and cumbersome process. We literally put ourselves in the clients’ shoes to comprehend the objectives and important risk areas of the JV partner and help you in acquiring the right partner for success of the JV. This we do through MCG ‘Due Diligence’ exercise.
Valuation
Finding the right valuation is an art. Failure to identify appropriate valuation technique will result in paying an exorbitant amount of money for the asset. Our process helps you in arriving at fair valuation of business you wish to form a JV with.
Agreement: negotiation drafting & finalization
Negotiation is a highly complex process and agreement can be a deal breaker if both the parties involved in a transaction do not reach a consensus on the terms involved. We bring in tremendous experience and knowledge in negotiating and drafting joint venture term sheets, agreements, shareholders’ and share subscription/purchase agreements which helps in smooth movement of the deal process and takes care of the needs of both the parties. We help you analyse the critical provisions to be included in the agreement for avoiding future conflicts like Non-Compete, Non-solicit, use of intellectual property etc
Continuous advisory
Our experience helps us suggest most suitable business structure keeping in view the operations to be undertaken and expectations out of the JV.
Exit strategy
It is also very important to have an Exit Clause in case of the venture not working out. We suggest various ways to do this like stake sale, buyouts and acquisitions. We guide you to create some predefined metrics, which if not met can then be used to exit the venture.