The global business environment is undergoing a profound and rapid transformation that is characterised by technological advancement, digital transformation, ESG considerations, ever-changing consumer behaviours and geopolitical uncertainties.
These challenges test traditional business models and companies must adapt, innovate and seize opportunities to thrive in this evolving landscape. Joint ventures have emerged as a unique vehicle to reduce risk and capital requirements with deal volumes shattering historic records in 2022.
Partnerships are a very different deal-type requiring a different approach compared to conventional deals, that's why KPMG has formed its own dedicated JV team.
- Evaluating whether to buy or partner?
- Wanting to create a partnership and need help with finding the right partner?
- Looking to set up a JV or an alliance and need help with design and structuring?
- Looking to reinvigorate/improve the performance of an existing joint venture?
- Seeking an exit from a joint venture?
The global volume of material JVs and non-equity partnerships increased by 25% in 2022 compared to 2021.
Deals focused on mitigating the impacts of climate change comprised 67% of new JV and partnership volumes, up from 19% 3 years ago.
- Assess different partnership scenarios and help you choose the most appropriate one.
- Perform strategic and commercial due diligence on the prospective partner.
- Design the JV including strategy, commercial model, operating model, valuation and deal structure.
- Translate the JV Blueprint into appropriate legal agreements and help to operationalise the JV.
- Assist with quick scan of your JV performance versus your initial ambition and develop a “turnaround” plan for areas of concern.
- Help you to negotiate and execute the most optimal exit scenario maximising value.
Getting the right leadership structures in place – not to mention the right leaders – is critical to optimising the success of a JV.
Getting the right leadership structures in place – not to mention the right leaders
As critical drivers of growth, strategic alliances should be up there with M&A as a top priority for CEOs. But success is dependent upon...
As critical drivers of growth, strategic alliances should be a top priority for CEOs.
Our Accounting Advisory Services (AAS) team navigates the complexities of financial statements for Joint Ventures and the parties involved.
With a deep understanding of accounting requirements and practical, commercial experience, they offer their expertise in evaluating the structure, legal form, contractual rights, and obligations of the parties, along with other relevant facts and circumstances. This enables them to determine the existence of a joint arrangement and recommend the appropriate accounting treatment for it.
Our valuations team will support you in understanding the potential contribution of the Joint Venture. They employ a valuation approach that focuses on shareholder value accretion and includes principles like employing a value lens throughout the deal, ensuring visibility over contributions and extractions, aligning key drivers between partners, adopting a flexible equalization mechanism for equity split, and optimizing the financial position for future growth.
JV Investment Analytics
Our JV Investment Analytics service offers data-driven insights and performance evaluation tools to enable our clients to make well-informed investment decisions. By analyzing financial data, key performance indicators, and market trends, we provide valuable insights on different financial scenarios. Our tailored integrated dashboard allows your team to test and understand the impact of movements in key value drivers in each JV scenario, as well as provide an overview of operational and financial indicators in a presentable format for discussions with stakeholders, as well as for reporting purposes.
KPMG Law's experienced joint venture lawyers provide cutting-edge, commercial advice and support on all legal aspects of joint venture arrangements, ensuring the legal structure aligns with your project goals and effectively outlines associated risks, reducing the chance of disputes and safeguarding your venture and interests, while offering seamless collaboration with other KPMG experts for efficient and cost-effective solutions to achieve your strategic objectives.