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Joint Venture


A Joint Venture is when two or more businesses bring together different resources and expertise to achieve a particular goal to benefit all parties. A Joint Venture agreement is created when businesses would like to work together on a specific project for a specific amount of time, but do not wish to establish a long-term commitment. Some joint ventures are used for small projects where other larger companies may use them to diversify. It is important to have a strategic plan in place to ensure both parties know what is expected and are focused on the future success of the partnership.


Joint Ventures


Joint Ventures allow business to:

  • Expand without investors or borrowing money
  • Develop new products
  • Access to new markets
  • Share costs and risks
  • Have access to more resources

Risks

However, there are some risks associated with Joint Ventures such as:

  • Business partners may not have the same objectives as you; this could lead to the business plan being unclear and poorly communicated
  • One partner contributes a higher level of staff or resources
  • Conflicted styles of management

Written Agreement

That is why it is very important to have a written Joint Venture Agreement, setting terms and conditions. The Agreement should include:

  • Objectives
  • Structure of agreement
  • Initial and ongoing contributions from each partner
  • Responsibilities of management
  • How liabilities and profits should be shared
  • Resolution in the event of a dispute
  • An exit strategy

If you are thinking about entering, or already in a Joint Venture, and require assistance in a Joint Venture agreement or any other aspects, please do not hesitate to contact us.

Joint Ventures

Reconstruction & Recovery


Reconstruction is a term used for reorganising the ownership and other parts of the company to make it more profitable. Reconstruction may also occur with the change of ownership structure or a major change in the business such as bankruptcy or buyouts. Reconstruction happens when a company has been suffering from financial difficulties for a number of years. The reconstruction can be internal or external.

Internal

Internal reconstruction is to re-organise the financial structure of a company.

External

A company can sell its business to another newly formed company. The new company is formed to take over the assets and liabilities of the old company, which means the old company can liquidate. The shareholders from the old company now become shareholders of the new company.

If you require further information on reconstruction and recovery please do not hesitate to contact us.

Reconstruction & Recovery

Mergers & Acquisitions


Mergers and acquisitions are aspects of reconstructing a business in order to provide growth and add positive value.

Mergers

Mergers occur when two companies come together to form a completely new enterprise and neither company remains independent.

Acquisition

An acquisition is the purchase of one business or company by another. This purchase could be up to 100% of the assets or ownership of the business.

Employment Protection During Business Takeover

If a business or part of a business is changing from one owner to another, their employees existing employment contract should be protected under the Transfer of Undertaking (Protection of Employment) Regulations, known as ‘TUPE’.

There are two different types of transfers that are protected under ‘TUPE’:

  • Business Transfers
  • Service provision changes

In business transfers, part of the business is transferred from one employer to another. This can include mergers (where two companies combine to form a new company). To be protected under a business transfer your employer must change.

Service provision change normally happens when:

  • A service that was previously provided by an employer is outsourced to a contractor
  • A contract ends with the service being performed in-house

You can only fully be protected under a service provision change if you are working on the service that is being transferred. For more information please do not hesitate to contact us.

Mergers & Acquisitions

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