A Joint Venture (JV) between two or more companies is a powerful way for each firm to ‘punch above its weight’ and take on larger projects or plans.
Whether a company is seeking local expertise in a new jurisdiction, access to skills, or simply spreading project risk - a well-thought-through JV can be of enormous business benefit.
Business leaders should also seek Corporate Law advice early as Joint Ventures have potential pitfalls, and poor preparation can blight what should be profitable.
Is a Joint Venture right for me?
A good corporate lawyer will advise on whether the proposed structure is the best vehicle for a project. Experience with many businesses in multiple sectors gives Solicitors a vital edge when assessing the risks and benefits of different agreements.
Your Corporate Solicitor will advise on the drafting of supporting agreements. Each partner in a Joint Venture knows and understands exactly what is expected from each party.
Well-drafted Agreements and a carefully selected Corporate Structure are crucial to ensuring the smooth running of a venture where two or more, possibly very different Corporate cultures, must work closely together.
Screening potential partners for a sensible financial track record and a due diligence process is vital.
A Joint Venture company will only be able to enter into agreements, borrow and spend money and be in day-to-day control of project operations by having a well-advised framework in place.
JV founders will also be able to retain control over their own corporate and operational risks. This can ease potential problems, which may have been more difficult without the correct legal groundwork.
How can I benefit from legal advice?
Areas where legal advice will assist:
- Valuation and Division of JV Assets
- Break Clauses
- Decision-making Structure – whether a separate Joint Venture company board or agreement between founders
- Policy and Agreement on profit distribution and financial risk sharing
- Shareholder Agreements such as Pre-emption rights on JV company shares and the creation of new shares
- Jurisdictional Issues such as what courts or arbitration arenas for any Dispute Resolution
- Closure of the Venture, including winding-up procedure and distribution of assets and allocation of debt
Get in touch with Jackson Lees.
Our knowledge of Corporate and Commercial Law will ensure that sound advice on your business is never far away. Jackson Lees can help you avoid potential legal issues with a new business. We can also help you deal with any problems or Disputes as they occur. Call us on 0151 282 1700 to talk about your business.
Contact our expert Commercial Law team today.