The governance of joint ventures matters. Today, many companies hold interests in numerous joint ventures – businesses or assets that offer great promise and introduce significant risks due to their shared ownership and decision-making structure.
Companies today must keep up with new market forces including pressures to become more sustainable, supply chain issues, increased inflation, new regulatory requirements, and changes in consumer preferences.
The advantages JVs offer can come with challenges that make joint venture agreements more difficult to negotiate.
The dispute review board, an innovative technique developed by the construction industry to resolve disagreements, can also help keep joint ventures on track.
Terminations of joint ventures and partnerships should not be surprising, but they often occur earlier than anticipated and can leave partners unprepared.
