• Negotiations with prospective partners will be substantive and non- substantive.
Beginning the negotiations
• Overall view point may not initially discuss details.
• Exit Strategies
– How the foreign partner can recoup the original investment
Conclusion
• Negotiating Joint Ventures is about the setting up of a company and the rights and obligations of each partner as well as how the company will be managed.
– How much each partner contributes and in what form
• Management
– The rules governing the direction a special considerations affecting personnel
Negotiations for Joint Ventures
Getting into business with a partner
Introduction
• Joint Ventures are enterprises established by two companies, one of which is foreign.
• Negotiations may have to take place with other agencies mostly on the basis of gaining information and approval.
What will be Negotiated
• Share Capital
• Different corporate structures exist.
Sequence for Negotiations
• One company (or both companies) will consider whether or not to invest in a foreign country.
• Important Factors
– Sequence – Structures – Role of Government – Prospective partners – Content
What is a Joint Venture?
• A Joint Venture is an agreement between two companies to form a third company.
• If the decision is taken to invest, the means of implementing that decision may include setting up a Joint Venture.
Preparations
• Negotiations with different government levels may be required to ensure that the Joint Venture conforms to the rules and regulations that are in force.