Companies choose the type of JV models based on Global Customer Mapping
SINGAPORE, MUMBAI, LONDON, CHICAGO, ILLINOIS, UNITED STATES, October 24, 2018 /EINPresswire.com/ — In a tête-à-tête at the Trade and Industry Association of Singapore, George Molakal the CEO of ALCOR discussed the various types of Joint Ventures to grow the companies globally. Joint Venture is a very powerful tool for any company to leverage the strength of another company. ALCOR M&A, the global leader in cross-border M&A transactions, works in 20 countries and has completed more than 300 cross-border M&A transactions with various types of JV models.
There are several types of Joint Ventures that are built to suit the requirements of a Joint Venture. However the most successful Joint Ventures are the performance-driven Joint Venture and some of the interesting models are,
• Green Field Switch Model
• Conditional Structure Joint Venture
• Minority Controlled Joint Venture
• Performance Joint Venture
• Low-Cost Market Entry Model Joint Venture
• Technology Joint Venture
• International Growth Value Joint Venture
• Restructuring Joint Venture
• Remote Resource Contract Joint Venture
George Molakal stressed that prior to doing a Joint Venture, "Every company must undergo a process known as Global Customer Mapping, which will identify potential customers, distributors, countries, profitability analysis, technology analysis to help decide which countries to get into a Joint Venture and which countries to get into distributorship to build global revenues." Companies who have used “Global Customer Mapping” as a tool, have increased their global revenues by 150% over three years.
The most common types of Joint Ventures are
Limited Function Joint-Ventures: This occurs when the party agrees to collaborate with another business in a limited way. If the party would want to launch new products by selling through a large company’s distribution network, the two businesses agree to set up a contract based on terms and conditions.
Separate Joint-Venture Business: This occurs when two different businesses form a third, separate new company (entity) to handle a particular contract. This type has many flexible options. Each partner owns shares of the company and agrees to manage among themselves in a systematic manner.
Full-scale Worldwide Mergers: These are international joint ventures on a large scale often involving international companies. The two businesses agree to create a new company with a particular product globally.
Integrated Joint-Ventures: These involve complex projects that divide two or more partners/parties that share profits and losses as well pool their resources in and employees according to their percentage of interest in the venture.
Non-integrated Joint-Ventures: This type of Joint-Venture is restricted, a form of non-partnership where each and every party is assigned a range of work and duties and is liable to profit loss, and resources in context to the work allotted. Members may experience obstacles related to internal conflicts.
Combination Joint-Ventures: It’s a combination of both integrated and non-integrated joint-venture used for more complex projects. Every party is assigned a portion of work/duty and responsible for own profits and losses, but members act as partners and may exchange and share their duties accordingly.
Equity Joint-Ventures: Two or more parties form another legal entity to carry out a project. The parties build venture capital and agree on resources like staff, profit sharing, machinery, etc.
Contractual Joint-Venture: In this type of Joint Venture, two or more parties form a partnership to achieve a short-term construction project.
James Poddar, a Business Analyst with ALCOR M&A, works with companies who want to grow their exports to 60 plus countries using the Unique Global Customer Mapping Model – http://www.alcormna.com/global-customer-mapping.
ALCOR MNA is a global Merger and Acquisitions Investment Bank with operations in 20 countries worldwide, completed more than 300 transactions, assisting companies to expand to 60 countries globally. www.alcormna.com
Source: EIN Presswire