Here are five insights:
1. A major JV advantage is the ability to collaborate with other business partners to make decisions, and the entry into related businesses that previously had high barriers to entry.
2. Within a JV, you will share the financial responsibility with the other entity, sharing the risks and costs.
3. A partnership like a JV allows each partner to grasp resources they didn’t previously possess.
4. Aligning cultures, management styles and incentives will prove as obstacles to creating a successful JV, however.
5. Disparities in commitment to project goals by either partner as well as poor tactical decisions by either party will harm the JV end goal.
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