European Life Sciences Company – Deal Structuring. Water Street advised a leading European life sciences company negotiating with a U.S. alternative energy company to form a JV, commercializing a new alternative energy technology. We worked closely with the deal team at the outset of the deal to develop a set of competing deal options, and we advised the team on determining a preferred approach (and fallback option). Once aligned internally, Water Street supported the team in ongoing negotiations, developing terms related to IP, exit, governance, and staffing. The JV was announced in 2011.
North American Chemicals Company – Deal Structuring. Water Street advised a large North American chemicals company on the strategy and execution of a major petrochemical JV transaction with an Asian partner. We started by conducting an outside-in review of the partner’s joint venture history. We then profiled analogous transaction structures. Next, we identified key deal design choices (e.g., operating model; approach to handling misalignments on offtake demand or future capex; management appointments; service level pricing, exit off-ramps), and, for each design choice, developed deal term options, with pros and cons, illustrations, and implications for each. As part of a one-day deal option working session, we designed the preferred deal construct and drove the design into a 5-10 page term sheet the client used in negotiations with the partner. The $3 billion JV was announced in 2015.
European Chemicals Company – JV Board Director Training. Water Street developed and delivered a one-day training program for 15 of a company’s seniormost JV Board Directors. Topics included: managing conflicts of interest, evolving governance at key JV inflection points, and influencing JV partners. We also administered a survey that enabled participants to benchmark their effectiveness against Water Street standards and peer Board Directors.
Middle Eastern Chemicals Company – JV Oversight Group Design. Water Street supported a leading Middle Eastern chemical company, with a large venture portfolio, to design and implement a new JV oversight group. Located at the corporate center, and led by a senior executive reporting to the company’s CEO, the unit is responsible for governing and managing the company’s venture portfolio. As venture managers join the group, Water Street supports them, via training and with tools, templates, etc. to execute their roles.
North American Life Sciences JV – Interface Analysis. Water Street supported the executive team of a new, interdependent joint venture to map and assess the effectiveness of the interactions between the JV's and the two shareholders’ employees. Using our proprietary JV Interface Analysis tool, we quantified the added “tax” the JV faced due to its interdependencies with the shareholders and identified practices (short of restructuring) to reduce the friction at key JV-shareholder interfaces.
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Water Street Partners LLC is not associated or affiliated in any way with Water Street Healthcare Partners, LLC, which is a wholly separate entity.