Understanding the Benefits of a Joint Venture
As a savvy entrepreneur or business owner, your goal is growth through
expansion of revenue and market share. While there are many business strategies
for doing this, some business owners choose to enter into a joint venture
with another business. A joint venture is established when two or more
companies agree to join their resources for accomplishing a specific project.
Joint ventures can be useful for large, international companies and small,
single owner businesses. The key to a successful joint venture is a clearly
written joint venture agreement. At
Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P., our New Orleans commercial transaction attorneys have over 30 years of
legal experience and can help you draft a clear, concise joint venture
agreement.
Speak with
our attorneys regarding your joint venture plan. Call (504) 517-8160 today.
Fundamentals of a Joint Venture
Businesses who wish to create a joint venture typically do so to accomplish
a specific business goal over a limited amount of time. Joint ventures
are different from partnerships as they are typically for a specific project
and for a limited duration, whereas a partnership is typically a broader,
longer-lasting business relationship. While the specifics of your joint
venture agreement are entirely up to you and the business you are making
the agreement with, there are two ways businesses can establish a joint venture.
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Two Businesses Join Forces: Both businesses enter into a contract with one another contributing cash,
property or other assets to the shared goal. You and other business will
outline a joint venture contract with your New Orleans commercial transaction
attorney explaining the terms of sharing profits, losses, management and control.
2.Two Business Create a Separate Business: Another option is to set up a separate company independent of both parent
companies. For example, the parties may decide to set up an LLC or a corporation
to produce a new product both parties had a hand in creating. Should you
choose this option, retaining a skilled New Orleans commercial transaction
lawyer is imperative for drafting a legal agreement outlining the terms
and conditions of your joint venture.
Hire an Attorney to Draft Your Joint Venture Agreement
Joint venture agreements can be extremely complicated, as they need to
include detailed information regarding the distribution of profits, losses,
management, and exit strategies. Retaining a skilled New Orleans commercial
transaction attorney to develop a joint venture agreement that falls in
alignment with both your business goals and your partner’s is critical
to the success of your business.
Speak to an attorney from Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P. today.
Call (504) 517-8160 or submit a
case evaluation form online!