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ARTICLE · 01 AUGUST 2025

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Key Considerations For Forming And Operating A Joint Venture In The U.S.

A&O Shearman
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Each of these items will help ensure that a U.S.-based joint venture (JV)—especially one in a regulated industry with cross-border aspects—is set up and operated on solid legal, compliance...

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Pre-formation phase

Partner due diligence and alignment

Perform thorough due diligence on prospective JV partners. Verify their legal standing, financial health, and compliance history (e.g., ensure they are not on any sanctions lists). Confirm strategic alignment on the JV's objectives and discuss long-term intentions and exit strategies upfront to avoid misalignment later.

Commercial and legal due diligence

Perform thorough commercial and legal due diligence of any business or assets intended to be contributed to the JV by prospective JV partners. Ensure early alignment on relative valuation of each partner's intended contribution to the JV to determine respective ownership interests in the JV.

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