A new joint venture model for two construction companies with a view to improvement of overall performances

A new joint venture model for two construction companies with a view to improvement of overall performances

With a view to a better market breakthrough, a joint partnership, i.e. a joint venture was established between two construction companies.

However, due to a series of external and internal factors, the partnership did not prove profitable. The lack of positive monetary flows aggravated the cooperation and both parties had an immense need for urgent action in order to build a better structure of the joint enterprise, alleviate tension and occupy the growing market.

They addressed us in order that we help them formalize a new working cooperation model. We first analyzed the current joint venture agreements and reviewed cooperation models, role distribution and financial results, in order to form a general overview of the current situation.

Secondly, we reestablished the agreement and constructed a new royalty rate model. Finally, we created a detailed business implementation plan for each partner in order to optimize business operations.

01
Opportunity
02
Approach
03
Results
However, notwithstanding the previous proved success and the huge market opportunities, no positive monetary flow was reached and both parties were confused with the situation. Our mission was to identify the roots of the misunderstanding, to mediate between the parties, reach a joint, reestablished agreement and build a feasible business plan which, step by step, would help the partner companies realize higher sales and profitability in the market.

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