![]() ![]() This is because regulating the issue of corporate governance is of decisive significance in a joint venture. In this sense, in a transaction where the buyer acquires only part of the shares, the document on which negotiations will often focus is the articles of association (and a shareholder agreement, if additionally concluded) and not the SPA. Also in a situation where one of the partners acquires the majority of shares, the minority shareholder will not renounce all of his rights that enable him to exercise influence. A joint venture, on the other hand, is always a mutual undertaking of several parties involved in the target company who have to come to an agreement at least on key issues. He is able to implement his concept of further business development without having to take into consideration any third-party opinions. Some of these issues are discussed below.Īs part of a transaction the buyer usually acquires full control over the target company. But also entering into such strategic partnership involves particular challenges. In times when full acquisition of a company through classic M&A may still hold significant economic uncertainties – either due to negative consequences of the COVID pandemic for the target company or, on the contrary, because it is too expensive due to existing market conditions and the related opportunities – partial acquisition in the form of a joint venture may be an alternative option worth considering. Rödl & Partner World Market Leader Index Germany. ![]()
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