Joint Ventures
Joint ventures are becoming more important as
a means through which companies embark on significant projects,
especially those involving multiple jurisdictions. As the
size of projects increase, commitments beyond the capabilities of
individual companies are often required. Business conditions
are constantly changing, giving companies the opportunity to enter
joint ventures as part of their strategic planning to enter into or
expand in certain markets.
In difficult economic times, there is often an
increase in the number of unlikely joint ventures due to financiers
converting a proportion of their debt into equity resulting in a
joint venture arrangement between the financier, the troubled
company and the other investors. These joint ventures have
particular distinguishing features. Important considerations
for the financiers are the share percentage and rights that they
are taking in a troubled company and the need to work out from the
outset their desired/expected exit route from the
company.
As well as the advantages joint ventures
offer, they do involve relinquishing an amount of control and
flexibility that a company might otherwise enjoy when undertaking a
project independently. Common areas for consideration in any joint
venture include the securities to be issued, financing,
prohibitions on the transfer of participations, the ability to
terminate and related exit strategy, such as a sale or an IPO. SNR
Denton advises on implementing, operating and dissolving joint
ventures across the globe. We will help you to create a structure
which meets your operational, legal and tax requirements while
satisfying your commercial objectives.
Areas of Focus:
- Energy, Transport and Infrastructure
- Financial Institutions and Funds
- Government
- Health and Life Sciences
- Insurance
- Manufacturing
- Real Estate, Retail and Hotels
- Technology, Media and Telecommunications