Alliances are increasingly common in today’s economy in which companies continue to pursue growth and expand their traditional markets while looking to reduce costs and strengthen their capabilities. Investing the time upfront to properly plan for the alliance, including establishing a proper governance structure to manage the venture over its expected life, is critical to ensure success. These governance arrangements can have many unique operational and financial reporting implications.
Planning is critical to ensure the success of an alliance. Flexibility is needed to manage and oversee the alliance from initial creation through exit/unwind. Clearly establishing the appropriate governance structure during the planning process is one of the most important considerations. During the planning stage, alliance partners should also consider:
Partner, Deals, Alliances Services Leader, PwC US