The joint venture is one of the forms of the strategic alliance. It can be considered a temporary partnership that brings together two or more parties to undertake a given business. The fundamental difference between the joint venture and the strategic alliance lies in the relationship they share and the nature of both companies. Joint venture relationships often involve complex tax and competition issues, which require the support of lawyers familiar with these areas. Our lawyers help analyze entity choice, liability, governance and competition law, which often occur in the development of these relationships, and work closely with recognized tax shops for all tax matters. While partners must offer complementary goals and skills, both partners must believe that they can trust each other and that mutual commitment is a reality. Mr Cullen said: “A common theme among managers from failed and successful strategic alliances is the importance of building mutual trust and commitment between partners. No matter how beneficial and logical the business may seem to both parties. Without trust and commitment, the alliance will fail completely, or it will not exploit its strategic potential. There are many ways for a company to gain and maintain commitment and trust in cooperation. The revelation of goals and intentions is a decisive step towards building trust.
Joint venture partners will outline their missions and objectives. The two parties share the right to manage the business, the right to profits and the obligation to share losses. The contract shall also determine the date of the end of the joint venture. We have experience in all aspects of the work of the joint venture, from structuring and financing to day-to-day operations to the dissolution of the joint venture itself, which ensures an adequate allocation of liabilities and risks and incorporates proven dispute resolution mechanisms. We also have experience in representing certain joint ventures in Switzerland and abroad, majority and minority shareholders, investors who contribute intellectual property, as well as “Sweat Equity”.