How to End Your Joint Venture Relationship?
Businesses naturally change over time, markets that were hot one minute can also go cold just as quickly. There is going to be a time when the joint venture arrangement needs to stop or at least adapt to the changing times.
Ending any relationship and that includes your joint ventures is much easier to do by addressing this key issue up front. Sometimes the joint venture may have included a distribution agreement, in which case you would normally have termination conditions for both parties.
You may have agreed to set up a joint venture company to execute the delivery of a service. If there is still demand for the service then may be one partner can buy the other partner out. It is normal practice for these options to be included in the initial agreement.
The original agreement should also set out what will happen when the joint venture comes to an end. For example;
- What to do about confidential information and how it would be protected
- Who is responsible for any liabilities; customer guarantees, debts etc
- What will happen to shared intellectual property
- Who will get any ongoing revenue
I have yet to see an agreement which resolves every possible issue. For this reason it’s vital that all parties maintain a positive approach to any discussion and negotiation. From my experience a friendly relationship is of paramount importance because even the most difficult issues can normally be worked through.
Apart from anything else, maintaining a good relationship will help any future joint ventures and it helps to raise your profile in the business community as a reliable ethical and productive partner.
Happy joint venturing.
Steve has a ton of experience in implementing joint ventures and includes working with the very large $20billion + enterprises all the way down to owner managed companies. For resources and joint venture support visit Joint Venture Cash Flow
Tags:customer guarantees,distribution agreement,intellectual property,joint venture company,Joint Ventures,venture cash
Tags: 
Loading ...