Joint Ventures Formation

A joint venture is a business arrangement in which two or more parties come together to create a new entity, sharing resources, risks, and profits. In the context of mergers and acquisitions law, this involves legal agreements outlining each party's contributions, management structure, and profit-sharing. Unlike a merger, where companies combine fully, a joint venture allows companies to collaborate while remaining independent. This can be beneficial for entering new markets, sharing expertise, or pooling resources for specific projects, while clear legal contracts help define roles and protect each party’s interests.