News & Resources
July, 2022
Joint ventures are excellent strategic opportunities to form partnerships with other companies to reduce investment risks, leverage from partners’ key capabilities, and drive value through synergies.
While Joint ventures have incredible potential to create value, experience has shown that many joint ventures do not deliver to their fullest potential. This is especially true for international joint ventures that end up delivering reduced value and fewer benefits than the partners expected.
“Getting More Value from Joint Ventures” is an excellent article by BCG that highlights how to create value in Joint Ventures and avoiding some of the common pitfalls in JV alliances. Key takeaways to creating value and having successful joint venture partnerships are:
Having a clearly defined partnership strategy and alignment of strategic and business goals
Cultural “chemistry” between partners i.e., cultural fit between partners
Properly defined JV governance structure
Appropriate controls in place for JV operations management to drive efficiencies
Strong, talented and dedicated management team with a mindset focused on making the JV succeed
And having an exit plan in advance in case of divestment or JV breakup
To learn more read “Getting More Value from Joint Ventures” by BCG.
September 2021
An article by McKinsey on how to successfully source and execute a string of deals that lead to the creation of a new business.
May 10, 2021 by Mustafa Siddiqui
Based on a study of select assets in the USA published by Wood Mackenzie, a global energy research and consultancy group, “The US onshore oil and gas industry has not been able to generate positive free cash flow over the last decade”. The figure below indicates the state of cash flows and capital expenditures and outlines the economic reality of numerous unconventional assets in the USA, which might be true for other assets globally.
Mar, 2019
What constitutes a successful deal and how is this measured? Is it improved profitability, revenue growth or increased shareholder value the primary metric of a successful deal?
The four most cited reasons for deal failure relate to Post Merger Integration (PMI) planning at an early stage of the deal. These PMI issues include poor integration, high complexity, difficult cultural fit, and low synergies. Most companies have standardized processes for M&A activities such as target search, due diligence, and valuation methods, but few have a standardized approach to PMI.
Incidentally shareholder value is not an important factor measured by corporate leaders for deal success.
Read more in this excellent article discussing causes of deal failure published by BCG.
September 2018
A great article by McKinsey on Thematic Investing