JV Management: Do You Have the Right Stuff?
The potential rewards of successfully piloting a joint venture are enormous. Those who can navigate the considerable challenges should be a celebrated breed. Do you have the right stuff?
David Ernst is a Senior Advisor at Ankura with more than 35 years of experience advising on strategy, transactions, restructuring, and governance matters. David is recognized as a global expert in the field of joint ventures. He has advised dealmakers and senior client executives across a range of industries, including oil and gas, chemicals, metals and mining, semiconductors, consumer goods, and health care. During his career, he has advised on more than 250 venture transactions in 33 countries, involving more than $300 billion in value, and has also served more than 100 existing joint ventures on governance and restructuring.
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The potential rewards of successfully piloting a joint venture are enormous. Those who can navigate the considerable challenges should be a celebrated breed. Do you have the right stuff?
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.
The advantages JVs offer can come with challenges that make joint venture agreements more difficult to negotiate.
More than 5,000 joint ventures, and many more contractual alliances, have been launched worldwide in the past five years.
To make it through the downturn and return to growth, companies will need to rewire operations, reallocate resources, and in some cases reinvent business models. Joint ventures and partnerships can help many firms with those efforts.
The boards of public companies are watched carefully to see how they’re doing on gender parity and other measures of diversity.
Alliances play a major role in almost every industry—from airlines to oil exploration, from pharmaceuticals to semiconductors.
JV transactions have complexities not found in traditional M&A – yet they’re often executed without the help of investment bankers. That can create pitfalls in the deal process.