What are joint ventures?
Joint ventures are a business arrangement created by two or more parties; these parties agree to merge their resources to pursue a new business project or task. All participants in a joint business venture are accountable for the venture’s profits and losses.
It is important to seek expert legal advice when pursuing a joint venture to ensure the arrangement meets your specific business needs.
Types of Joint Ventures
There are four types of joint ventures:
1 Project Joint Venture
Many business owners use this type of joint venture, as the arrangement focuses solely on one single business goal and once that project is completed then the joint venture ends.
2 Functional Joint Venture
This type of joint venture features two or more companies joining together as they have individual expertise in the specified business areas. This is a co-operative venture, as both parties’ profit of each other’s expertise.
3 Vertical Joint Venture
This type of venture is between two different parties; the buyer and supplier
4 Horizontal Joint Venture
This type of joint venture is between two entities in the same range of business.
Do I need a solicitor when completing a Joint Venture Agreement?
There are many benefits to receiving expert legal advice when pursing a joint venture, we have compiled a list of benefits for you to consider;
Ensuring a fair result by meeting both parties’ needs
We ensure that the individual needs and requirements of each party’s business goals are met and fully adhered to during the process of a joint venture. Our legal experts will monitor each party that they are equally contributing to the joint venture. This is to ensure that both parties are benefiting equally from the arrangement.
Protecting your assets
Our solicitors ensure that you avoid the risk of losing out on your interests. The advantage of using a solicitor during a joint venture is that the communication is clear and concise, this reduces the risk of misinterpretation or grey areas in the agreement. Our solicitors will clearly lay out each parties responsibilities so the joint venture is smooth and any personal interests you may have are protected.
How we can help
Our solicitors at P.A. Duffy & Company are able to advise on various types of joint ventures. At P.A. Duffy and Company, we understand that pursuing a joint venture can be complex and taunting for one party to deal with. Our legal experts have experience of dealing with clients pursuing joint ventures therefore we are well placed to guide you through the process and treat your case with professionalism and clarity to achieve the best outcome for you and your business.