KPM ASSET clients through several stages of the joint venture process: strategy development, partner selection, deal structure, and operating implementation. Our leadership team has successfully proven itself and established market credentials in our home markets over the last few decades. We specialize in cross-border, mid-market segment transactions across multifarious sectors and industries. Additionally through our partner network spread across 30 key markets globally, we accelerate the process of managing all Joint Ventures / Partnerships engagements through active involvement of local partners.
So far as JV / Partnership activities are concerned, it is an acknowledged fact that the process is tough and it takes deep level of market knowledge and insight to successfully manage the process to get the desired results. KPM ASSET's approach to manage this process rests upon the following principles:
1. Identify the right markets & opportunities.
Ability to identify and participate in the right markets and opportunities are crucial in building a wining growth strategy. Being selective about the markets to enter is the most effective way to extract value and reduce possibilities of business issues. Our experience has shown that speed does make a difference, but only when combined with the right advise and strategy.
2. Establish local market traction and intelligence.
Knowledge of the local market and its business practice, more often that not, is the single biggest difference between success and failure. Insight into the regulatory and operating environment, including the sector policies, is essential in taking a firm decision on pursuing opportunities. Further, advance knowledge of a prospective partner in can be crucial and useful while negotiating the deal framework.
3. Define transaction objectives including culture issues.
We advice our clients and partners to draw up a specific transaction objective statement that seeks to address the immediate set of business objectives to be managed for both companies while the integration is underway. This is most important while issues pertaining to competition tactics and engagements are concerned as these could result in the JV / Partnership process getting expensive and complicated.
4. Scan market for potential partners / targets.
Although there will always be preferred partners that get identified in each market, it is not always that one is able to specifically conclude a transaction with them. It is therefore essential to have a multi level discussion initiated with multiple prospects and moving with speed based on agreed priorities with each of them, before concluding with the best business and strategic fit.
5. Build deal framework and engage with prospects.
Defining key performance metrics in advance for JV / Partnerships – Board Structure, Decision Making process, Retaining Key Talent and Customer Traction tactics – is essential for ensuring that post deal priorities and engagement approaches are aligned between the two sides. Business structure clarity ensures that alignment of interests is addressed right at the beginning to smoothen process of execution.