Negotiating Partnerships: Increase profits and reduce risks

Two basic methods of creating added value

When two companies enter into a co-operation agreement, there will always be a certain amount of duplication of work. The extent of this can, however, be limited. It is, e.g. sufficient to have one finance department rather than two.

Whether the gain can be realized is determined by the extent to which the savings are being consumed because of territory conflicts and by the company’s ability to dispose of the freed resources or make use of them in a productive way.

When the experience, the knowledge and the creativity which exist between the different people start to work together, a synergy effect arises. The sum of two plus two equals significantly more than four. These gains do not come about from ...