EXITING THE GAME: RESOLVING A JOINT VENTURE DISPUTE
There are many reasons why companies choose to enter into joint ownership business structures. Some alliances are tailor made, while others comprise far less obvious bedfellows pursuing growth, productivity and profits.
Whatever its makeup, a joint venture (JV) relationship typically involves considerable planning and effort on the part of parties that have decided to collaborate for mutual benefit. Such arrangements often involve pooling resources, sharing costs and risks, and accessing new markets, expertise, technology or distribution channels.
However, although popular, JVs are also among the most challenging forms of business structure and they frequently fail. According to Deloitte’s November 2025 analysis, ‘Equity Method Investments and Joint Ventures’, more than 50 percent of JVs end within three years, while fewer than 20 percent survive for six years or longer.
“Entering into a JV comes with a variety of challenges,” concurs Geoff Allen, a partner at Trowers & Hamlins. “These can include finding a partner that is the right fit, successfully blending different organisational cultures, the potential for a lack of cooperation as decision makers go in different directions when circumstances change, and failure to align on strategic objectives.
“If a company can successfully overcome these hurdles, it can benefit from the many advantages of participating in a JV,” he continues. “This could be accessing innovation and technology, new talent pools and expansion into new countries, particularly high growth emerging markets.”
Apr-Jun 2026 issue
Fraser Tennant