This document discusses joint ventures and acquisitions. It defines a joint venture as two or more entities collaborating together on a business for a contractual period to share profits, losses, and responsibilities. It provides examples of potential joint venture partnerships and products between an electronics and telecommunications company. It outlines the types of joint ventures, advantages like risk sharing, and disadvantages like cultural differences. It also discusses factors for a successful joint venture. The document defines an acquisition as a company purchasing another company or its assets. It provides advantages such as an established business but also disadvantages like key employee loss. It discusses synergy between acquiring companies and structuring an acquisition deal.

1. Joint Venture & Acquisition
By Shakir

2. Joint Venture
• Two or more entities joining together to run a
particular Busniness for Contractual
Agreement or for temporary time period.
• Share Profits and Losses.
• Share Responsbilities.
• Colloboration.

4. Joint Venture
Electronic Company
Manufature and Sell following products
• Computer and Tablets.
• Cameras and Camcoders
• Gaming Device-> Playstation
Telecommunication Equipements.
Services
• Wireless Services Provider.
• Manufacture and sell Telecom
equipments like BTS(Base
Transceiver System)

5. Joint Venture

6. Joint Venture

7. Joint Venture

8. Types of joint venture
• Private companies.
– Entering new or foreign markets, raising
capital, cooperative research, etc.
• Industry-University
– Created for the purpose of doing research.
• International joint ventures.
_ To Enter in foreign markets.

9. Joint Venture
• Advantages
– Increased capacity and oppertunities.
– Access to more resources.
– Sharing of Risks.
– Exposure in new Markets.
– Gain of new Technology Knowledge.

10. Joint Venture
• Disadvantages
– Making good relationship with partners can be
challenging.
– Imbalance in level of expertise, investment may
result in decreased effectivenes of venture.
– Different cultures and management styles result
in poor integration and co-operation.

11. Joint Venture
• Factors in Joint Venture Success:
– The accurate assessment of the parties involved to
best manage the new entity.
– The degree of symmetry between the partners.
– The expectations of the results of the joint
venture must be reasonable.
– The timing must be right.

12. Acquisition
• The purchase of an entire company, or part of a
company the company no longer exists
independently.
• Advantages of an Acquisition
– Established business.
– Location.
– Established marketing structure.
– Cost.
– Existing employees.
– More opportunity to be creative.

15. Acquisition
• Disadvantages of an Acquisition
– Marginal success record.
– Overconfidence in ability.
– Key employee loss.
– Overvaluation.
• Synergy
– “The whole is greater than the sum of its parts.”
– Synergy should occur in both the business concept
and the financial performance.

16. Acquisition
• Structuring the Deal
– Involves the parties, the assets, the payment
form, and the timing of the payment.
– Two most common means of acquisition:
• Entrepreneur’s direct purchase of stock or assets.
• Bootstrap purchase of assets.

17. Acquisition
• Locating Acquisition Candidates
– Brokers, accountants, attorneys, bankers, business
associates, and consultants may know of
candidates.
– Business opportunities in newspapers or trade
magazines.