The best Joint Ventures benefit every business entity involved. The benefits may include revenue, brand exposure, access to resources, strategic expertise, manufacturing experience, and more. Here are several more examples of why some companies may choose to form a joint venture:
Two similarly sized companies join for a specific event or single-product offering.
A large company chooses to work with a smaller company to have access to their technology.
A company with an established product or service may choose to work with a foreign company to help them break into a new market.
A small company may decide to work with a large company who has the resources to manufacture their product.
Two small companies may want to combine resources to win a bid too large for them to fulfill on their own.
Two or more companies may decide to work together to share risk.
Joint Venture agreements are often formed to combine markets to increase exposure.
A company may have more business than they can fulfill and may choose to enter a short-term agreement with another business to help them serve their customers.
If you are considering a joint venture with another company, it is always a good idea to talk to a lawyer as part of your process.