Joint Venture
What is it?
- It is an agreement to pull together resources towards a single project. Joint ventures can be structured as limited liability companies, partnerships, or as contractual relationships.
- Joint venture agreements typically involve the contribution of assets from each party as well as the distribution of income and expenses.
- Joint ventures can also be created if companies are interested in expanding into new geographies.
What to expect?
- A joint venture has a limited life, which is dependent on the contract that was agreed upon by the parties.
- Joint ventures are made between companies so that they can combine and maximize their resources and expertise as well as minimize their expenses.
- Parties in a joint venture must also be vigilant regarding the terms of management and the taxation of the joint venture in order to fully utilize the benefits of the agreement.
Who should consider
- Companies who seek to benefit from having a relationship or affiliation with a strategic partner who may be a larger player in the same industry.
- Companies who seek to create a new corporation through a collaborative agreement with other companies with a more specialized scope.
- Companies looking to expand geographically but lack a local presence.
How Can Bayfront Help
Strategy Review
Detailed analysis of the Client and advise on value-adding corporate strategies.
Competitive Benchmarking
Detailed analysis of the Client and benchmark them against Industry standards.
Structuring
Detailed analysis of the Client’s capital structure and advise on the optimal proportion of equity and debt.
Deal Execution Management
Assisting in execution of deal processes, most commonly in the form of capital raising.
Valuation
Helping to navigate through the complexities of transaction, improve transaction execution, and increase the chance of success.
Information Memorandum
For presenting to different target audience such as lenders, new sales relationships, new client relationships.
Governance Review
To determine the specific governance needs of a company and assist in areas which would minimize risks and help achieve business goals.