INTERNATIONAL JOINT VENTURE FULL
INTERNATIONAL JOINT VENTURE SERIES

In their rush to complete a deal quickly and begin capturing value, inexperienced JV planners neglect the foundational steps of planning. Invest more up frontĪs business negotiations go, JVs are marathons, not sprints. identified three principles that made a difference in deal negotiations: investing more time and effort up front, working harder to cultivate and sustain the JV relationship, and standardizing key processes and learning mechanisms. We interviewed 45 joint-venture managers.

INTERNATIONAL JOINT VENTURE SERIES

How can executives build healthier partner relationships to give future JVs the best odds of success? Our review of a series of long-standing partnerships-supported by our 2014 survey and a series of structured interviews with JV partners 2 2.

That’s a long time for doubt to creep in, particularly if the competitive context justifying a venture might shift in the meantime. One global conglomerate we’ve observed advises its US-based headquarters to expect JV negotiations to last three to six times longer than M&A negotiations. Given how much longer those negotiations can last compared to traditional acquisitions, this is both understandable and alarming.

In fact, we encounter many executives who express significant concerns, often when they’re wrapped up in the uncertainty of JV negotiations. Of them, 982 executives had personal experience leading or managing joint venturesīut JVs are not always embraced without reservation.

INTERNATIONAL JOINT VENTURE FULL

This McKinsey Global Survey was in the field from March 11 to March 21, 2014, and garnered 1,263 responses from C-level and senior executives representing the full range of regions, industries, company sizes, and functional specialties. Eileen Kelly Rinaudo and Robert Uhlaner, “ Joint ventures on the rise,” McKinsey on Finance, November 2014. Their volume seems likely to endure-more than two-thirds of executives surveyed in 2014 reported that they expect to do more JVs in the future. Yet there they are, more than 1,500 JV deals completed annually over the past ten years, including around 10 percent of them characterized as large JVs, with an initial value of more than $250 million. Slow in the making, often with complicated structures and shared management teams, they seem out of place in a volatile era marked by buzzwords that hype agility and nimble strategic moves. In the fast-paced world of deal making, joint ventures (JVs) are a conundrum.

International joint venture