Joint venture or strategic alliance is a form of partnership where businesses come together to share markets, tools, knowledge, profit. Joint ventures can exist of various forms and sizes. Why do we choose Joint Venture?
The joint venture partner will have the financing and will often have the right expertise, both of which will be needed to make your company successful, state-of-the-art business. And they will have the financing available to create a marketing plan which, along with your knowledge of the local market, will create an effective marketing strategy.
With our contacts in Ukraine we can find and qualify suitable joint venture partners for your business. This, of course, often requires us to convince potential joint venture partners that there is profit to be made in the Ukraine and more specifically by a joint venture with your company. And this often requires that the potential joint venture partner must be convinced that he can make money in this area of the world despite some of the local problems. But we have more than a decade of experience working in Ukraine, one of the countries of the former Soviet Union, so we do know what kind of information the companies are looking to feel secure and we can help you supply it.
Some of the most widely-known and famous Ukrainian joint ventures in the world are: Aerosvit, UAC-Antonov, Gazprom & Naftogaz, Eurogas, Modern-Expo, Transeuro, etc.
Potential joint venture partners looking to invest in Ukraine also need to be convinced that their investment will be safe. A potential joint venture partner will need to be given confidence that any investment here will be protected and that any profits on that investment can be repatriated out of Ukraine easily. We have enough experience working in this area of the world so that we can help provide that confidence. We can search for and qualify an appropriate joint venture partner from Ukraine.
Business Partners in Ukraine have experience in putting these types of ventures together so that our expertise will be available for you to do this effectively. We have the legal expertise available to put the joint venture together in the most advantageous way possible. We can serve as a support of business negotiations or go between in making sure that your expectations and the expectations of the joint venture partner are mutually understood. Misunderstandings may occur especially between companies from different cultural perspectives and these can undermine the most solid joint venture projects.
Organization of JV is possible from scratch, through creation of a new joint business, and through membership in the operating business, becoming co-founders of operating business.
Creation and launch of a new joint business is subject to identical procedures of creation and launch of any business, organization and realization of a project, jointly sharing risks with a partner that also entails primary identification of the partner and next verification of his business reputation.
Creation of a Joint Venture (JV) in Ukraine, buying part of corporate rights of a Business in Ukraine
The most widespread form of organization of Joint Venture is purchase of the part of corporate rights of Business, with an increase of the capital or without.
To successfully become a partner, co-owner of operating business, it is necessary to conduct selection of businesses according to the required criteria and to conduct business negotiations with existing owners.
The initiator, during selection (analysis) of business with the aim of entering into the joint partnership, joint ownership, should base on such key aspects of the procedure:
1) Studying of the current market of Ukraine; identifying of the most attractive sectors, directions of activity.
2) Evaluation of conjuncture of the market. Definition of the basic criteria for selection of business \ local partner for joint venture.
3) After defining the sphere or industry that is attractive, defining the criteria for creation of JV, it is necessary to enter the market with the public proposal for organization of JV.
4) After that, the initiator will select and study current proposals about organization of JV \ sale of the part of corporate rights of business.
5) Organization and conduction of negotiations.
6) The mandatory meeting with owners of business (even if the Mandate for sale is available).
7) Request for legitimacy of the sale part of corporate rights.
8) Verification of business and financial reputation of potential partner(s).
9) Development of Protocol of Intentions by Ukrainian lawyers and signing of Protocol of Intentions.
10) Conduction of Due Diligence.
11) Legal Expertise.
12) Financial Expertise.
13) Conduction of Audit (verification of creditor’s and tax debts, and reliability of financial reports).
14) Evaluation of Business. Alignment of the value of the corporate rights.
15) Studying of the Charter \ Constituent Agreement. Revision \ alignment of new positions, if necessary.
16) Development of the optimal structure of transaction, including development of the financial model of transaction.Tax optimization of the transaction.
17) Legal and Advocate Support of Transaction: Development of the Sale and Purchase Agreement; Legal expertise of the Sale and Purchase Agreement; The signing of Sale and Purchase Agreement; Fiduciary Service; Notary Support.
18) Closing of the transaction.
19) Entry into the rights and registration of property rights.
We wish You to become Successful co-owners of business!
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