Joint Ventures & Alliances

Alliances and joint ventures serve many purposes, including filling gaps in capabilities or facilitating new market entry. Several trends drive the value of these partnerships, including:

  • Shortened product life cycles
  • Globalization of competition
  • Increased specialization of skills and capabilities, particularly in high-technology businesses

Bain assists clients through several stages of the joint venture process: strategy development, partner selection, deal structure and operating implementation. We have found that alliances go wrong most frequently due to neglect of the first stage, strategy development. Therefore, we focus disproportionately on ensuring that alliances are structured correctly from the outset, with a very clear, shared vision and a solid understanding of mutual economics. At the same time, we have experience coming into an alliance after problems have appeared and supporting management on a restructuring to optimize value for both parties.