Seven practical tips for negotiating joint venture deals

In the face of economic and geopolitical disruption, companies are increasingly entering into joint ventures, strategic investments, and partnerships (“JVs”) to address their most pressing challenges. In fact, the number of new material JVs announced in 2024 increased by 50% in the two years since 2022, even as overall M&A deal volumes declined.¹ 

While the rise in the number of JV deals may suggest that companies are completing JV transactions with ease, in reality, JV deals are challenging to execute. In addition to negotiating traditional M&A terms (e.g., representations and warranties, indemnities, and valuation), JV parties must also reach agreement on terms that survive after JV formation and throughout JV operation (e.g., voting rights, IP use, exit provisions, and commercial/support agreements with one or more partners). With so many moving parts, getting to JV formation can be an extended process – requiring training, endurance, and grit.

Fortunately, companies can take concrete steps to improve the JV deal process. 

Please click here to read seven practical tips for negotiating JV deals.

Authored by William J. Curtin III (Hogan Lovells), Sean Collins (Hogan Lovells), Tracy Pyle (Ankura Consulting), and Anand Swaminathan (Ankura Consulting).