A strategic alliance offers the participants of the alliance commercial or technological opportunities which would not have been created without such an alliance. Ehrhardt Leus & Associates’ role in shaping a strategic alliance is particularly focused on making sure that the strategic goals are well defined and met, and a balanced alliance is the result.
A joint venture takes place when two parties come together to take on one project. In a joint venture, both parties are equally invested in the project in terms of money, time, and effort. Since the cost of starting new projects is generally high, a joint venture allows both parties to share the burden of the project, as well as the resulting profits.
A joint venture is not to be taken lightly. For it to be truly a “joint venture,” there has to be a strong commitment from both sides.
When determining whether or not to embark on a joint venture, it is important to ensure both parties are a match and both parties are capable of communicating what they are able to offer to the project and what their expectations are.
Since money is involved in a joint venture, it is necessary to have a strategic plan in place. In short, both parties must be committed to focusing on the future of the partnership, rather than just the immediate returns.
Ehrhardt Leus & Associates gets involved in joint ventures for different reasons, such as:
- A joint venture or strategic alliance needs to be created
- A joint venture may fail and needs to be disentangled
- One of the joint venture partners needs to be replaced and / or bought out
- The joint venture needs additional financing
