What is Joint Venture (JV)?
Joint Venture (JV) refers to a strategic partnership between two or more companies that come together to achieve a common goal. In this type of business arrangement, each party contributes expertise, resources, and capital towards the project while sharing the risks involved in the venture.
A joint venture can be established for short-term or long-term projects and may involve various forms of investments such as technology transfer, marketing efforts or even distribution channels. The purpose of forming a JV is often to combine complementary strengths that will enable both parties to benefit from economies of scale and increased market access.
The success of any joint venture relies on the ability of parties involved to work collaboratively and openly communicate with one another in order to make decisions that align with their shared objectives.