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JOINT VENTURES


FOCUS 9


Q A


I am thinking of a joint venture. What should I do?


“Take the time to do your research properly. Get to know the marketplace by talking to customers, regulators and supply chain providers at the same time as potential partners. Get a feel for the main players in the market, for who has a good reputation – and who has not. Meet your potential partner several times, then ask yourself these questions: ‘Can they deliver what I need?’ and ‘Do we have what they need?’ and – most importantly – ‘Can we work with these people?’”


Q A


Are joint ventures always a 50/50 deal?


“A lot of people jump straight to a 50/50 joint venture because they assume this is the best – or even the only – joint venture deal. This is absolutely not the case. A balanced shareholding does not necessarily bring a balance of power. A thorough understanding of what each party is bringing to the table, what the joint venture is designed to deliver and how a balance of value can be extracted is fundamental. Focus on these business imperatives and create the structure which can best deliver them and you will have the best chance of success.”


To fi nd out more, please contact:


Steve Burch Joint Ventures T: +44 (0)20 7311 8446 E: steve.burch@kpmg.co.uk


© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


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