Checking the partner
Diligence on a joint venture partner should cover its ownership, including any government shareholders, its financial condition, litigation history, and reputation in its market. Sanctions screening and an anti-corruption review are especially important where the partner deals with government agencies or will be the venture's link to officials. Ask how the partner handled earlier ventures and why they ended. Some countries cap foreign ownership in certain sectors, which can decide whether you are able to hold a majority stake at all. Speaking with former partners or local advisers, where possible, can fill gaps that documents leave. What you learn here often changes what you ask for in the agreement.
Protecting what you contribute
When technology or a brand goes into an international joint venture, decide whether it will be licensed or assigned, and what happens to it if the venture ends. Register patents and trademarks in the venture's country before sharing details, where that is possible. Limit access to sensitive know-how to what the venture actually needs, and confirm whether export control rules restrict sharing it at all. Capital contributions should come with clear terms on future funding, because disputes often begin when one partner cannot or will not put in more money. Confidentiality terms should bind the venture's staff as well as the partner itself.
Running and ending the venture
After launch, the practical issues are information rights, dealings between the venture and either partner, and what happens when the board cannot agree. We help set up reporting, approval processes, and a schedule for reviewing whether the venture is meeting its goals. When a venture ends, the exit provisions, the treatment of shared intellectual property, and any non-compete obligations decide how cleanly the partners separate. In a first meeting we review the proposed partner, the deal terms on the table, and the countries involved, and we point out which protections should be negotiated before anything is signed.
