More companies are using alliances and joint ventures to achieve growth. These partnerships can be complex, but if done well, they create advantages for the participating companies.
Similar to mergers and acquisitions, alliances and JVs can be integral to a company’s growth strategy. In considering an alliance, the board should know the broader deal landscape, including market trends and recent actions by competitors. Directors also should have a clear view of their company’s overall growth strategy and be able to ask management, “Why are we doing this, and can we achieve more success in a different way?”