Joint Ventures Law

The Joint Ventures Task Force has developed for publication a Model Joint Venture Agreement with Commentary and Ancillary Documents, similar in concept to other Model Agreements prepared and published by the Committee. The Model Joint Venture Agreement, now available for purchase (see below), is based on a fact pattern that involves a joint venture between two U.S. companies.

On behalf of our leadership team, welcome to the Committee homepage of the International M&A and Joint Venture Committee. We hope that you will find the content of this page useful. It includes past editions of our newsletter, program materials from past Committee programs, Year-in-Review articles and references to websites which we consider useful for our daily work in the field of international M&A and joint ventures.

In order to compete in modern markets, competitors sometimes need to collaborate. Competitive forces are driving firms toward complex collaborations to achieve goals such as expanding into foreign markets, funding expensive innovation efforts, and lowering production and other costs.

The Joint European Ventures (JEV) programme is part of the European Commission's Growth & Employment Initiative. Its aim is the provision of financial contributions for the establishment of transnational joint ventures by innovative SMEs within the EU. This will be distributed indirectly through banks and other financial institutions in Member States under the overall management of the Commission services.

A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Like a partnership, joint ventures can involve any type of business transaction and the "persons" involved can be individuals, groups of individuals, companies, or corporations.

A joint venture is when two or more businesses pool their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared. Reasons you might want to form a joint venture include business expansion, development of new products or moving into new markets, particularly overseas.

The mission of the Antitrust Division is to promote competition in the U.S. economy through enforcement of, improvements to, and education about antitrust laws and principles.

As the United States shows signs of emerging from recession, there has been some discussion on the best way to enter the China market but perhaps under reduced financial constraints. A joint venture partner is often considered because it is less expensive than building from scratch.

Joint ventures are domestic or international enterprises involving two or more companies joining temporarily to undertake a particular project. They have grown in popularity in recent years—joint ventures between U.S. and foreign firms, for example, have increased at an average of 27 percent since 1985. Certainly, not all of them will be successful; estimates of the failure rate of joint ventures reaches as high as 70 percent. Nonetheless, companies persist in initiating them for a variety of reasons. Read more: Joint Ventures - benefits http://www.referenceforbusiness.com/encyclopedia/Int-Jun/Joint-Ventures.html#ixzz13mfOSfHs

Foreign companies often enter joint venture partnerships unaware of the dominating corporate governance practices in developing countries, according to Susan Perkins (Assistant Professor of Management and Organizations at the Kellogg School of Management). In a recent working paper, Perkins and coauthors Randall Morck (Professor of Finance at the University of Alberta) and Bernard Yeung (Professor and Dean of the National University of Singapore) outline the potential costs of not recognizing and accounting for these dynamics in the design of a joint venture.

As there are good business and accounting reasons to create a joint venture (JV) with a company that has complementary capabilities and resources, such as distribution channels, technology, or finance, joint ventures are becoming an increasingly common way for companies to form strategic alliances.

United States Joint Ventures News provides articles and news for global professionals in joint ventures.

Articles written by attorneys and experts worldwide discussing legal aspects related to Business and Industry including: agency and distributorship, agency law, business and industry, business formation, business law, commercial law, contracts, corporate governance, corporate law, e-commerce, food and beverages law, franchising, industrial and manufacturing, joint ventures, legal economics, marketing law, mergers and acquisitions, offshore services, privatization law, retail, shareholders rights and utilities.