There may come a point when your business wants to expand into a new area but it doesn’t have all of the resources or expertise to do this on its own. If you know or can find another business that can “fill the gap”, then by combining your respective resources and skills you may be able to grasp the new business opportunity together: this is known as a “joint venture”(JV). A joint venture is usually used for a specific transaction or series of transactions and can be between two domestic joint venture partners or, where there is an international element, between a UK and an overseas business.
The usual form for a JV is either a Limited company or an LLP (Limited Liability Partnership) and most commonly there are 2 parties who each have 50% of the JV. We can help to set up the JV vehicle and prepare the JV agreement and all related documentation (which may, for example, include a distribution agreement). Our lawyers have many years’experience of advising on JV’s and we can guide you through some of the key considerations, such as Board composition and control, deadlock provisions and extraction of profit / exit routes.
If your JV has an international element then our international network of lawyers, LawExchange International
, will have a local firm who can be part of our advisory team.