There are good business and accounting reasons to create a joint venture (JV) with a company that has complementary capabilities and resources, such as distribution channels, technology, or finance. Joint Ventures are becoming an increasingly common way for companies to form strategic alliances. In a joint venture, two or more “parent” companies agree to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared control.
Beta Consultants help its clients in forming suitable JV alliances; this begins with identifying suitable JV partners and culminates into signing of JV agreements.
This process includes screening of prospective partners , carrying out due diligence, development of an exit strategy and terms of dissolution of the joint venture, formulating the most appropriate structure, analysing viability of appreciated or depreciated property being contributed to the joint venture, allocation of income, gain, loss or deduction to be made among the partners including compensation.