Joint ventures and alliances

Joint ventures and alliances are increasingly important strategic tools for companies as they respond to market disruptions and drive innovation and growth. A joint venture can provide the benefits of collaboration without the financial risks associated with an acquisition.

What EY joint ventures and alliances services can do for you

Joint ventures are used in almost all major industries, but the primary objectives of the ventures vary by industry and by company. Companies may participate in joint ventures to access scale, new markets, unique technology or to share risks. The diversity of reasons for adopting a joint venture or alliance — and the variety of assets contributed to the venture — dictate that each one requires customized legal, governance and operational design. A recent EY survey shows that a majority of CEOs are contemplating forming joint ventures, strategic alliances or alternative deal structures with third parties. Yet, few corporate development departments have joint venture expertise, as they are less common than acquisitions. And, in many cases, the executives who lead a joint venture transaction often transfer to the new entity, leaving the parent company with no internal expertise to manage the next one.

We help clients by bringing a true end-to-end lifecycle approach to a joint venture or strategic alliance. We provide integrated strategy, financial, operations, tax, risk, technology and human resources capabilities, enhanced by our proprietary digital tools such as Strategy Edge, Diligence Edge and Capital Edge. Across the joint venture lifecycle, EY professionals can help companies with:

Joint venture and alliance planning

  • Strategy and business plan development
  • Joint venture scope definition
  • Partner selection assistance
  • Commercial analysis
  • Financial, legal and tax structuring assistance
  • Negotiation assistance and valuation of asset contributions and equity stake
  • Clean room analysis of synergy potential
  • Stand-alone and one-time cost analysis

Forming a joint venture or alliance

  • Integration and separation planning
  • Regulatory, tax and legal entity planning
  • Joint venture financing
  • Financial reporting planning
  • Board governance and structuring advice
  • Dispute resolution and exit planning
  • Tax, accounting and reporting impact for different entity structures
  • Parent company service agreements

Operation

  • Growth and synergy realization
  • Integration management
  • Organizational design
  • Culture, communication and change management
  • Financial and tax reporting
  • Partner capital management

Joint venture and alliance dissolution

  • Investigation and dispute resolution
  • Valuation assistance
  • Tax planning
  • Separation planning and execution
  • Integration planning and execution
  • Carve-out financial statements

Navigating joint ventures

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