External Publications, Transactions

All Joint Ventures Come to an End: Four Tips for Drafting JV Exit Terms

Terminations of joint ventures and partnerships should not be surprising, but they often occur earlier than anticipated and can leave partners unprepared.

2022 marked the end of many high-profile joint ventures, including BP, Ford, and Worldwide Wrestling Entertainment shutting down Russian joint ventures or partnerships; Stellantis pulling out of its loss-making Jeep production JV in China; and Pfizer announcing its intent to exit from Haleon, its consumer health venture with GSK, after listing Haleon in London’s biggest IPO in more than a decade. Drafting exit terms in JV agreements can be challenging for counsel as clients and their partners often do not know who will exit and when or how successful the venture will be. Divergent views among partners commonly lead to clashes, particularly when an exiting partner is critical to the JV’s success. Discover the steps legal practitioners can take now to navigate these and other challenges of drafting and negotiating JV exit terms.

Read the full article originally published in Business Law Today.

About the Author

Tracy Branding Pyle

Tracy Branding Pyle is a Managing Director at Ankura who specializes in helping organizations navigate complex transactions, and, in particular, joint venture-related transactions. She works with a wide array of U.S. and international companies across industries to help them structure, negotiate, approve, and launch joint ventures to set these ventures up for success. She additionally advises on governance of individual joint ventures and portfolios of joint ventures to help companies to minimize risk, increase efficiencies, and find value. Prior to joining Ankura, Tracy practiced law at Hogan Lovells, where she advised clients on joint ventures, public and private mergers and acquisitions, and corporate governance matters. Tracy is based in Washington, DC.


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