What’s a Joint Venture Broker – and What does he do?
A Joint Venture Broker (short: JV Broker) works doing joint ventures for any kind of business. Joint ventures can be defined as any business agreement where two parties are committed to create a new entity or a new asset – and they need to contribute equity. Each party share revenues, profits and expenses in the new venture as well. A joint venture can also be defined as a temporary agreement between two parties to carry out an specific project, and the bond is dissolved with the success or failure of the enterprise. A joint venture broker uses all the expertise acquired in this activity to find the right project or product for the right people.
Special Skills of a Joint Venture Broker
A Joint Venture Broker needs a very wide set of skills to implement Joint Venture Strategies. They have to be good in terms of communication with people and spotting trends in the market. Networking and negotiating skills are vital for your success as a joint venture broker. They have to build relationships with key people in the niche they chose to deal with, and learning about their needs and wants is a must. Participating in events, joining discussion forums etc. is a time-intense process, but will help a lot to find those needs and wants.
General guidelines to a successful joint venture
Joint venture brokers (or JV Brokers) understand that for brokering deals and in order to create a successful joint venture partnership both parties must have a mutual long term need, and this need must be specific rather than just general in nature. The joint venture broker must bear this fact in mind all the time to generate value for the parties involved in the transaction.Furthermore, each party must be committed to make full use of the joint venture arranged by the joint venture broker, and they should be committed to do business with each other. The joint venture broker must make sure that there is a written agreement to pay the broker a fee when the deal is completed.
The importance of a broker and the FTC
A joint venture broker is very important for the growth of any company. A joint venture is a very costly process in any corporation, and a joint venture broker can help them a lot to save money and time. Corporations need long-term growth and mergers, acquisitions and joint ventures are excellent vehicles for them to achieve this goal. A joint venture broker will design a proposal for a partner taking into consideration the following factors: costs and benefits involved in the project, a calculation of the success rate of the project – it must be done a priori – considering all the aspects of the situation, among other things.
A joint venture broker understands that the Federal Trade Commission can hold public hearings to deal with problems in joint venture transactions. They are watching what is going on in the business world to stop any anti-competitive joint venture out there. The FTC works closely with the Department of Justice to make sure the business environment is safe and free from any joint venture that makes the market a chaos.
The market value of a joint venture broker
A joint venture broker is something who can provide a lot of value to any corporation or firm of any kind. Joint ventures are complex agreements, and the right joint venture broker will be able to make the right people come together to increase their capacity of production, provide some economies of scale, lower costs, developing new products or services, pool development and research resources, among other things.However, a joint venture broker must make sure that there are no anti-competitive strategies developed by any of the parties involved in the venture, because the FTC will kick in right away to close the deal. This professional must make sure no price-fixing element is found inside the deal, or any attempt to control a critical supply of a competitor, among other factors.
Types of joint ventures
Joint ventures – also called competitors collaborations – come in six primary types. The first type is the fully integrated joint venture, which is the involvement of the whole operations of the participants in the venture – including sales, marketing, manufacturing and distribution. In fact, this type of joint venture can be considered as a merger. A network joint venture is a collaboration among members of an industry to get even more customers – examples are the telecommunications and transportation industries. Production joint ventures are just collaborations between parties to manufacture final products or those that are just inputs in their production process. Distribution and marketing joint ventures are created to jointly promote or sell particular products or services.A purchasing joint venture is created when two parties agree to buy inputs that are needed in their production processes. Research and Development joint ventures are created to manufacture or create products or services faster.
This kind of activity can bring major revenues and other long term benefits for any company.