DEALMAKERS LOVE using simple analogies to explain complex transactions. A favorite we hear is that joint ventures are like marriages. True, a strong marriage has shared decision- making and a common bank account (though we suspect modern marriages lack service agreements). But where this analogy falls flat is that while marriages are covenants intended to last forever — only 5% have prenuptial agreements — joint venture legal agreements have the terms of exit defined at the outset in 95% of the deals we see.

Unfortunately, these terms are often problematic, with critical flaws that go unaddressed by dealmakers concerned that…

Water Street Partners

A leading joint venture advisory firm. Founded in 2008 by the co-leaders of McKinsey & Company’s JV and alliance practice executives from CEB.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store