Joint Ventures

A strategic joint venture may be a business agreement between two business entities to work together to achieve specific goals, objectives and performances. Unlike a merger or acquisition, a strategic joint venture does not have to be permanent, and it offers the business entities advantages of maintaining their independence and identities as individual companies and disadvantage to the smaller size company getting the smaller percentage of the deal. In a strategic venture two business entities might share possession, risks and returns. Strategic joint ventures may be seen as a strategic alliance, though the latter may or may not entail a binding legal agreement whereas the previous will. A strategic joint venture is also considered a set of a strategic partnership. They may seek contracting opportunity together.