Joint venture & acquisition

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  • 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.
  • 3. 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)
  • 4. Joint Venture
  • 5. Joint Venture
  • 6. Joint Venture
  • 7. 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.
  • 8. Joint Venture Advantages Increased capacity and oppertunities. Access to more resources. Sharing of Risks. Exposure in new Markets. Gain of new Technology Knowledge.
  • 9. 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.
  • 10. 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.
  • 11. 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.
  • 12. 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.
  • 13. Acquisition Structuring the Deal Involves the parties, the assets, the payment form, and the timing of the payment. Two most common means of acquisition: Entrepreneurs direct purchase of stock or assets. Bootstrap purchase of assets.
  • 14. Acquisition Locating Acquisition Candidates Brokers, accountants, attorneys, bankers, business associates, and consultants may know of candidates. Business opportunities in newspapers or trade magazines.