Joint Venture & Acquisition

By Shakir
Joint Venture
Two or more entities joining together to run a
particular Busniness for Contractual
Agreement or for temporary time period.
Share Profits and Losses.
Share Responsbilities.
Colloboration.



Joint Venture
Joint Venture
Electronic Company
Manufature and Sell following products
Computer and Tablets.
Cameras and Camcoders
Gaming Device-> Playstation
Telecommunication Equipements.
Services
Wireless Services Provider.
Manufacture and sell Telecom
equipments like BTS(Base
Transceiver System)

Joint Venture
Joint Venture
Types of joint venture
Private companies.
Entering new or foreign markets, raising capital,
cooperative research, etc.
Industry-University
Created for the purpose of doing research.
International joint ventures.
_ To Enter in foreign markets.


Joint Venture
Advantages
Increased capacity and oppertunities.
Access to more resources.
Sharing of Risks.
Exposure in new Markets.
Gain of new Technology Knowledge.

Joint Venture
Disadvantages
Making good relationship with partners can be
challenging.
Imbalance in level of expertise, investment may
result in decreased effectivenes of venture.
Different cultures and management styles result
in poor integration and co-operation.

Joint Venture
Factors in Joint Venture Success:
The accurate assessment of the parties involved to
best manage the new entity.
The degree of symmetry between the partners.
The expectations of the results of the joint
venture must be reasonable.
The timing must be right.

Acquisition
The purchase of an entire company, or part of a
company the company no longer exists
independently.
Advantages of an Acquisition
Established business.
Location.
Established marketing structure.
Cost.
Existing employees.
More opportunity to be creative.

Acquisition
Disadvantages of an Acquisition
Marginal success record.
Overconfidence in ability.
Key employee loss.
Overvaluation.
Synergy
The whole is greater than the sum of its parts.
Synergy should occur in both the business concept
and the financial performance.

Acquisition
Structuring the Deal
Involves the parties, the assets, the payment form,
and the timing of the payment.
Two most common means of acquisition:
Entrepreneurs direct purchase of stock or assets.
Bootstrap purchase of assets.

Acquisition
Locating Acquisition Candidates
Brokers, accountants, attorneys, bankers, business
associates, and consultants may know of
candidates.
Business opportunities in newspapers or trade
magazines.