Commercial | Joint Ventures & Strategic Alliances
Joining forces with another business can be an effective way of adding capability and resource, scaling-up, taking opportunities and limiting risk.
Such arrangements come in different forms, from simple strategic alliances for a particular project or purpose through to major corporate joint ventures. Each involves the application of good commercial insight and legal expertise across a broad field of issues – including intellectual property rights, resource application, commitments of the parties and any restrictions on their activities, employment rights and incentives, third-party consents and regulatory approvals, to name but some.
We have the breadth of skills and experience to deal with any form of joint venture or strategic alliance, applying the expertise of our lawyers in each of the relevant fields.
- Our client manufactured components forming a major part of a healthcare system. The market in such systems was concentrating and the number of system builders consequently reducing. Our client’s market power as a component supplier was therefore similarly reducing and it decided to ensure a route to market by combining in a joint venture with a major system producer in a joint company. We advised on the structure, the regulatory clearances, the JV vehicle, the intellectual property licences, the supply agreements and the overall governing joint-venture agreement.
- Our client wished to distribute its products in North America but had no presence there. We discussed the possibilities and it was recognised that ultimately our client would want to own its distribution network but would need strong local input initially, which would not give our client visibility of the market. A joint-venture company was therefore formed with a major distribution company, which gave our client control of the distribution business but incentivised the distribution partner and entitled our client to purchase full ownership at an appropriate time.