Joint Venture (JV)

What is a Joint Venture (JV)?

A joint venture (JV) is a business arrangement where two or more companies come together to undertake a specific project or business activity. In a JV, the participating companies share resources, risks, and profits based on an agreed-upon structure. Joint ventures are commonly used to enter new markets, develop new products, or share expertise.

Advantages of a Joint Venture

• Shared Risk: Companies share the financial and operational risks associated with the project.
• Access to New Markets: Joint ventures can facilitate entry into new geographic or industry markets.
• Resource Sharing: Partners can leverage each other’s resources, expertise, and technology.

Related Terms and Concepts

Partnership, merger, strategic alliance, business collaboration