A Monmouth County Business Lawyer Explains
Part of our business litigation practice involves helping business owners explore their options in a joint venture. Joint ventures are a popular way for companies to share their strengths and assets while simultaneously bolstering their organizations’ capabilities. While joint ventures can be an excellent opportunity for growing your business, they must be entered into with caution and with the right intentions.
If you are considering entering a joint venture, you should contact a Monmouth County business attorney beforehand to ensure that you are making the best decision for both yourself and your potential partner.
What are the Uses of a Joint Venture?
Whereas a partnership is an ongoing relationship, a joint venture is typically based on a single project that will be completed at some point in the future and will cease to exist once the venture’s goals have been met. A joint venture might be right for your business if you are looking to:
- Enter a new market;
- Share risks with a partner;
- Gain access to new resources, technology and staff;
- Exit from businesses that are not your core focus (also known as divesting);
- Prepare a business for sale.
It may be helpful to view a joint venture as both a learning experience and growth opportunity for your company. However, like all ventures, there is some risk involved, which is why it’s advisable to have a Monmouth County business attorney on your side to help you navigate the joint venture process.
What are the Dangers of a Joint Venture?
A joint venture can also have several pitfalls. Many joint ventures fail because of disagreements over profits and risk management. Others may fall because of the sheer lack of expertise of one of the partners. The dangers of joint ventures include situations where:
- Objectives and expected end of the partnership are not clearly defined and communicated;
- Responsibilities, investments and assets are not equally or proportionately shared;
- Partner involvement is low;
- Cultural differences cause too much tension for the partnership to be productive.
Failure in a joint venture might result in business litigation against one or more partners. Thus, it is extremely important to have the agreement clearly written out and understood by all parties involved. A Monmouth County business attorney can ensure that your joint venture agreement is fair to your business interests.
Our Monmouth County Business Lawyers Can Help
If you are considering a joint venture or find yourself in a business transaction dispute, you can contact our office for help. If you want to protect yourself and your business in a joint venture, it is important to have experienced legal counsel on your side. A Monmouth County business attorney can help you. We serve clients all throughout central New Jersey.