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Joint Venture



A joint venture is a business entity created by two or more parties, which is shared by ownership and shared governance. A joint venture can be brought about in the following major ways:
1. Foreign investors buying an interest in a local company.
2. Local firms acquiring an interest in an existing foreign firm.
3. Both the foreign and local entrepreneurs jointly forming a new enterprise.
Sometimes it is difficult to get good parties so there are Joint venture brokers who act as a mediator between two companies and make an agreement to work together on a particular job.
Joint venture broker:
A joint venture broker is people who connected business joint venture partners together for profit-making projects. The joint venture brokers will earn a pre-negotiated percentage of the profits earned from the joint venture that they helped put together. A joint venture broker must tread lightly and be aware not to put direct competitors together as partners, but they find indirect competitors that both market to the same target audience with different and complementary products/services. In finding such suitable partners, great joint venture partnerships can be created. The joint venture broker will often find multiple suitable partners for their clients to join venture with, hence thus producing great profits of which the broker is often paid a pre-negotiated percentage of sales.
Hope this article helped you to get an idea about the joint venture model. If you are looking for a joint venture partnership do reach out to Select Dine, we are here to help out the best partnership for your company.

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