Joint Venture Roles and Responsibilities
Who exactly is involved in most joint ventures? To some extent this will vary a little bit and much depends on the size of the businesses involved, the size of the deal and how much knowledge the parties have of doing Joint Ventures.
Let’s take a look at one of the simplest joint ventures - An endorsement
There are normally three to four parties involved with any joint venture;
- The product or service owner - Endorsee
- The owner of a database that he has a relationship with - Endorser
- A lawyer
- A Joint Venture broker
Lawyer
Out of all the people that could be involved, we occasionally find that there is no legal representation. To some extent if the deal or strategic alliance is small and very simple you may not need a lawyer. Often times a simple Memorandum of Understanding will suffice. Much of course depends on your risk or exposure.
Joint Venture Broker
If you have some experience of joint venturing, you may not need a broker. Please be careful though because a good broker is often helpful in providing a turnkey solution. It is the small details that can get missed that sometimes make a deal go bad and that would be a shame.
Endorsee
The endorsee is the owner of the product or service. If you are the endorser always make certain that the endorsee is reputable and is able to supply the product or service that they claim. We usually insist on getting customer references and actually speak to customers to make sure they can deliver the service as promised.
Endorser
As the owner of the database and the relationship with customers you will want to make certain that the product/service offered is a good fit. Here is another opportunity to carry out some due diligence but this time for the endorsee. I would always speak or call a few of the endorsee’s customers to verify their profile and whether they would be likely to want what the endorsee is offering.
Before going ahead with a major role out it’s always best to test a small sample of customers with the offer. This way you can learn from it and change or adapt as necessary.
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
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Tags:endorsement,joint venture,memorandum of understanding,relationship,strategic allianceRelated posts
Tags: endorsement, joint venture, memorandum of understanding, relationship, strategic alliance
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