Joint Ventures

A joint venture is a business arrangement in which two or more companies come together to share resources and expertise to achieve a common goal. It can be very flexible, lasting either long-term or just for a specific project.

Forming a joint venture is a significant step, which can at times be complex. Partnering with us ensures you have access to vital legal and practical insights needed to make informed decisions. From initial negotiations to drafting joint venture agreements and implementing structures, we provide a comprehensive service tailored to each client’s unique needs.

Choosing the right partner

If you’re considering a joint venture, think carefully about your choice of partner. Whilst you’re looking for fresh input, their approach should complement yours. You need to have the same objectives, closely matched management and business cultures, and clearly defined commitments to the joint venture. Otherwise, the relationship and the venture itself can quickly fail.

The importance of a written agreement

Just agreeing verbally on the terms of a joint venture can lead to misunderstandings and costly disputes. A written joint venture agreement protects your business interests. This legal document outlines the terms and conditions, roles and responsibilities, profit and loss sharing, and decision-making processes.

Types of joint ventures

There are different types of joint ventures, and we advise on the best structure for your needs, while safeguarding commercial interests. The most common structures include:

• Limited liability company (Company)
• Limited liability partnership (LLP)
• Partnership (or limited partnership)
• A purely contractual co-operation agreement

When we draft an agreement, we ensure it covers all necessary aspects, such as:

• the structure and objectives both parties wish to achieve;
• financial contributions from each party;
• confidentiality agreements and ownership of intellectual property;
• how profits, losses, and liabilities will be shared;
• who will manage which aspects of the venture;
• how disputes will be resolved; and
• the exit strategy.

We will also work closely with your accountants and other advisers to ensure structures are chosen that will meet your requirements.

If you’re already part of a joint venture and things have gone wrong, our dispute resolution team can help find a resolution with the minimum of fuss and disruption.

No matter the size, structure, or reason for setting up a joint venture, our solicitors have the knowledge and skills to protect your interests and maximise the benefits of the arrangement.

For more information, please get in contact with our Corporate and Commercial Team.