They’ll have to rewire operations, reallocate resources, and in some cases reinvent business models.Īt many firms, joint ventures and partnerships will play an outsize role in those efforts, both as a vehicle for sharing costs and reducing capital needs during the crisis and as a way to position themselves for growth once it ends. Given that their returns have been climbing, their impact is quite likely to remain strong or even increase in the foreseeable future.Ĭompanies will need every tool they’ve got to survive the downturn and rev up their businesses as the economy rights itself. At numerous firms, they drive a large share of earnings. JVs are already ubiquitous in sectors under pressure, like energy, and in innovative industries such as life sciences. The authors then describe how parent companies can strengthen their own financial positions by using JVs and partnerships to make partial divestments, consolidate businesses, and collaborate on capital-light, low-risk growth initiatives. In this article three consultants outline how companies can shore up their existing JVs through capital-raising, cost-reduction, and synergy-tapping techniques that often aren’t available to wholly owned entities. Joint ventures and partnerships can help many firms with those efforts. Any other agreements between the parties regarding the operations of the JV.To make it through the downturn and return to growth, companies will need to rewire operations, reallocate resources, and in some cases reinvent business models.A copy of the solicitation the JV wishes to pursue and.The bid bond (in the name of the JV) - if applicable.a 51% joint venture member needs to demonstrate the ability to bond at a minimum 51% of the contract amount)-if applicable The CBE partner needs to demonstrate the ability to bond the percentage of the contract amount that is commensurate to their percentage interest in the JV (e.g. letter from the bonding company that details on a single level what each party can bond). Proof of bonding capacity for each member of the JV (i.e.list of past or current projects that are similar to the project scope of the opportunity the JV wishes to pursue) Each member must demonstrate that the JV has the competence and expertise necessary to perform the type of work in connection with the opportunity the joint venture wishes to be certified (i.e. Documentation demonstrating past project performance of the businesses within the JV. The most current audited or reviewed financials for the non-CBE member(s).
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