Supplier Alliances: Using Contractual Terms to Increase Reliability

COMPANIES AS DIVERSE as Apple, Boeing, LyondellBasell, and Tesla depend on suppliers for inputs critical to their business (Exhibit 1). Suppliers might possess technological, locational, or infrastructural advantages that make them irreplaceable in the short-term. As such, even temporary disruptions in supply can create ...

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Operationalizing Joint Venture Governance

JOINT VENTURE GOVERNANCE is fractionally defined at deal conception – and rarely recovers from this state of incompleteness. Our research and client work has consistently shown that poor governance is a major cause of JV underperformance, and that JVs with weak governance policies and practices have materially lower ...

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Raising the Bar on Non-Operated Joint Venture Influencing

HOW DO YOU GET senior executives from five of the six largest international oil companies, a slate of mid-tier independent producers, a handful of the world’s largest chemical companies, and one of the world’s largest mining companies – representing a portfolio of over 1,000 non-controlled JVs – into a room together in ...

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Director Assessments – Common Sense but Not Common Practice

CORPORATE GOVERNANCE has been in the spotlight. Boards have been busy addressing issues related to executive compensation, cyber threats, enterprise risk management, and in general, seeking to keep the raiders and activists at bay through diligent work. As they do this important work, virtually all corporate Boards ...

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Managing Competitively Sensitive Information in Joint Ventures
FEW, IF ANY, COMPANIES ENTER INTO joint ventures with the explicit purpose of infringing on anti-competition laws. But even while the parties may not intend to fix prices, divide up markets, limit production, or engage in other collusive behavior, joint ventures nonetheless present an environment rich in ...

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Designing Joint Venture Deals for the Future
IT IS CERTAINLY POSSIBLE to negotiate a Joint Venture Agreement without dwelling intensely on the future. Indeed, dealmakers have some very good reasons not to over-prescribe the future. After all, defining the future takes time, draws attention away from getting the deal done, and adds to non-closure risk. Defining the ...

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Opening the Door for New Owners in a Joint Ventures

IT IS NOT UNCOMMON FOR JOINT VENTURES to bring in new owners to gain scale, access needed capabilities, support future funding needs, or allow existing owners to monetize their investments. Star Alliance, the global airline joint venture led by United Airlines and Lufthansa, has grown from its original 5 owners to its ...

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Key Observations on Joint Venture Launch Planning

A QUARTER CENTURY AGO, companies awoke to the fact that success in M&A hinged upon running a highly deliberate and well orchestrated post-merger integration process. Serial acquirers like ABB, General Electric, Lloyds TSB, Thomson Reuters, Tyco International, and Waste Management realized that there was a right way – ...

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Alliances: Getting Non-Equity Collaboration Right

PARTNERSHIPS HAVE COME of age in the last 20 years, becoming a central tool for corporate strategy and competitive advantage across industries and geographies. Companies as diverse as Amazon, GlaxoSmithKline, Google, IBM, Microsoft, News Corp, Philips, Siemens, Shell, Starbucks, and Uber all routinely see partnerships ...

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Water Street Partners advises clients on transactions and governance. Our transaction work specializes in joint ventures and other non-M&A partnerships, both in new deal formation and restructuring. On governance, we advise clients on corporate and joint venture governance, working with corporate and joint venture boards, management teams, and individual shareholders. We support clients around the world and across industries. 

Infographic of the Month:
The Importance of Joint Ventures 
Infographic The Importance of Joint Ventures
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Joint Venture Management
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