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GLOSS ARY

Joint venture

A joint venture is a joint agreement between two or more parties. They decide to engage in an economic activity. JBR is the experienced partner when it comes to expertise in joint ventures.

Why choose a joint venture?

More and more companies use joint ventures to realise their strategy. A joint venture can bring a lot of benefits. Generally, a joint venture results in a joint subsidiary with pooled resources. Both participating parties remain fully independent and none of the parties in the joint venture has a majority interest. A merger and a joint venture are two separate things. Merger means that the parties fully agree on terms, resulting in one new company being created. In a joint venture, however, the forces of both parties are bundled. Together they integrate knowledge, products, services and financial resources to achieve profitable economic activity. The profit and loss will be shared by all parties. Because often multiple parties participate, a joint venture is a complex form of cooperation. During the establishment of a joint venture, it is necessary to make concrete arrangements and to properly secure them.

Advice on cooperation

Joint ventures are often complex and can be extremely sensitive. In a joint venture, companies with different backgrounds and visions will work together. Not every company itself has the necessary competencies in order to achieve the goals of cooperation despite the contrary interests. JBR has more than 30 years of experience in joint ventures and is happy to assist you.

More information and contact

Curious about how we can help you set up a joint venture? Can you use a mediator to guide the collaboration? Then contact us on +31 (0)30-699 90 00.

Important points:

  • More and more companies use joint ventures to realise their strategy.
  • Establishing a joint venture requires certain competencies.