At the outset, a joint venture (JV) is accompanied by
handshakes, a meeting of minds and a great business strategy. But
in addition to the idea of pursuing a new business goal together
and pooling resources to share the profits, it is of salient
importance to think one step ahead and include an exit strategy in
the JV agreement.
When doing business together many unexpected changes can occur
and the parties may find that their strategic interests have
diverged. When the parties cannot reach a consensus on important
issues, they may find themselves in a deadlock. This can disrupt
the operations of a JV and hurt the value of the business. Finding
an ex-post solution can be a nightmare resulting in a delayed exit
and high costs.
