JV Alchemist Editorial Team

Part of the JVAG Killer Questions Series.

The purpose of this note is to outline where the scope of JV due diligence differs from M&A investigations, and to offer thoughts on the factors that impact JV due diligence design.

This document provides a basic outline of key regulations impacting joint ventures
involving foreign investors in China. It is intended to serve as a reference guide for foreign
investors considering new JVs in China, as well as for those currently in joint ventures in
the country.

A checklist of deal level standards.

The following standards reflect Water Street Partners’ view of what “good” looks like when structuring key terms and provisions of a joint venture agreement.

Global Principles Of Accountable Corporate Governance: Joint Venture Governance Guidelines.

The purpose of this checklist is to present a checklist of standards for dealmakers structuring JV
contract terms related to how the partners will manage secondee-related issues in their joint
venture.

This document provides a set of draft standards that should guide how pricing is defined and negotiated for and with those owner-customer.

There is a better way: Tailoring deal terms related to voting, disputeresolution, and exit to the specifics of the JV. While this takes a bit more time and effort, the up-front investment pays multiples later in the JV’s life.