The course focuses on the nature, structure and objectives of joint ventures and strategic
alliances and highlights the requirements for effective corporate partnership.
The legal framework and related tax consequences of particular types of joint venture and
strategic alliances are also outlined within the overall context of an essentially practical course.
Who should attend?
- Managers and Supervisors
- Petroleum Engineers
- Petroleum Economist
- Legal Advisers
- Business Development and Planning Staff
- Marketing Staff
Duration: 05 days
You will learn to assess whether a proposed joint venture is likely to be the most effective means of promoting a company’s activities into new markets, product lines or services.
Emphasis is placed upon the identification of a suitable partner and upon the establishment of a workable structure, an effective management and an efficient exit route.
Contents & Outline:
DAY ONE: The Nature of Corporate Partnering, Selecting an Appropriate Partner
- Motivation – entry to foreign markets, matching resources, supply chain management
- Overall Corporate Objectives – developing a group-wide alliance strategy
- Risk Analysis – relationship & performance risks, political & resource risks
DAY TWO: Effective Negotiations
- Cultural issues – open, honest & polite vs. sharp, devious & heavy-handed
- A JV is not an Acquisition – the result is very different from a Sale & Purchase Agreement
- Traps to Avoid – inappropriate partner, unsuitable structure, changing circumstances
DAY THREE: Choice of Structure
- Strategic or Transactional – agree the specific objectives, abandon preconceived ideas
- Contractual Joint Ventures – simpler, cheaper, most tax efficient?
- Corporate Joint Ventures – advantages, disadvantages, tax considerations
DAY FOUR: Managing a Joint Venture
- Pre-Nuptial Agreement – marry in haste; repent at leisure
- Avoid Dependency – a JV partner is an ally; not a friend
- Control Systems – procedures should cater for both senior and junior partners
DAY FIVE: Termination
- Exit Planning – include termination procedures in the initial agreement: four flavours
- Future Operations – embed JVs as a core competence by learning from past mistakes