September Partnership Conversation: Aligning Incentives and Managing Misalignments

Joint ventures often fail due to misaligned partner incentives (e.g., asymmetric economics, strategic divergence, differing commercial roles), and misalignment on key decisions (e.g., JV strategy, budget, capital expenditure, growth prospects). Thus, requiring a concerted effort to ensure incentives for being in a JV are aligned and to foresee and prevent future misalignment – both during the deal phase and post-close.

Join us along with Darryl Wong, Head of Venture Management from Neste, and Yoga Anand, Business Development Manager from Marathon Petroleum on September 25th at 10:00 AM EST where discuss how they successfully aligned incentives and prevented misalignments while negotiating Martinez Renewables Fuels JV (a 50-50 JV between Neste and Marathon Petroleum)

During the discussion, we will seek to answer some questions related to aligning incentives and preventing misalignments in JV transactions, including but not limited to:

1. What are the areas where the parents in the JV may have diverging incentives (e.g., role as off-taker vs. owner in a JV?
2. What are the common areas where parents can be misaligned both during the deal phase (e.g., deal process, timing to close) and post-close (e.g., budget, governance)?
3. What are the common tools, tips, and tricks parents should use to foresee and prevent future misalignment (e.g., scenario planning)?
4. Should potential misalignment mitigants be pre-wired into JV legal agreements?