CHAPTER TENWHAT ARE THE MAJOR COMMERCIAL NEGOTIATION POINTS IN AN IJV?
‘Successful negotiation is not about getting to “yes”; it’s about mastering “no” and understanding what the path to an agreement is.’
– Christopher Voss
Regardless of the specific transaction, deal teams will inevitably negotiate over the same points consistently – this is regardless of whether the IJV relates to a multibillion dollar technology business or a small service company.
This chapter will not be able to cover the nitty gritty of all possible IJV negotiations, but will walk the you through specific issues that are likely to arise and provide guidance as to how best to be prepared.
The negotiation team will have their internal biases. The consultant will wish to work through the issues methodically while the lawyer often prefers to neatly package issues into a legal document. These different perspectives can improve the JVC and elevate it from a purely contractual document to a useful tool for the IJV’s implementation and future operations.
The common issues outlined below will be an integral part of the completed JVC and will be supplemented by specific elements for your project and which would have been raised by your business plan, financial model, due diligence and other specific objectives that relate to you and your partner’s proposed IJV.
10.1 COMMON ISSUES
As complex and iterative as an IJV negotiation tends to be, there are a number of issues that appear in almost every negotiation. ...
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