Knowing when to call it a day – Planning Termination

Knowing when to call it a day – Planning Termination

In this issue we look at the joint venture termination planning and provide four areas of consideration when undertaking this activity.

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Termination comes in many forms, and for many reasons. The three most common reasons companies look to terminate a JV or alliance are:

  • it has achieved its objective;
  • a change in the external business environment that makes the partnership unpromising for one or all parties; or
  • a change in strategy of one of the parents.

Good joint venture management involves having a termination plan ready and in place that can be implemented quickly and efficiently.

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