External Publications

Joint Ventures and Partnerships in a Downturn

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.

In this article three consultants outline how companies can shore up their existing JVs through capital-raising, cost-reduction, and synergy-tapping techniques that often aren’t available to wholly owned entities. The authors then describe how parent companies can strengthen their own financial positions by using JVs and partnerships to make partial divestments, consolidate businesses, and collaborate on capital-light, low-risk growth initiatives.

JVs are already ubiquitous in sectors under pressure, like energy, and in innovative industries such as life sciences. At numerous firms, they drive a large share of earnings. Given that their returns have been climbing, their impact is quite likely to remain strong or even increase in the foreseeable future.

Read the full article originally published in the Harvard Business Review.

About the Authors

James Bamford

James Bamford is a Senior Managing Director at Ankura based in Washington, DC. He joined Ankura with the firm’s 2020 acquisition of Water Street Partners, which he co-founded in 2008. Water Street Partners has been independently ranked as the number one global advisor on joint ventures since 2017. Prior to Water Street, he was global co-lead of the Joint Venture & Alliance Practice at McKinsey & Company.

Gerard Baynham

Gerard Baynham is a Senior Managing Director at Ankura with over 15 years of experience in management consulting and deal making. Gerard has worked across a wide range of transaction types, including M&A, minority equity investments, joint ventures, alliances, partnerships, and divestitures.

David Ernst

David Ernst is a Senior Managing Director at Ankura based in Washington, DC 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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