
The 2021 M&A Report: Mastering the Art of Breaking Up
Many companies are eyeing divestitures in the current environment. Are they likely to create value? What is the best path to success?
Joint ventures promise a lot. But the majority don’t deliver. BCG helps companies get more value from these relationships by avoiding common pitfalls throughout the joint venture life cycle.
Companies in every industry turn to joint ventures not only to reduce risks or costs but increasingly to spur innovation or achieve objectives that no partner could achieve on its own. While joint ventures do have tremendous potential to create value, many of these deals—especially international joint ventures—end up delivering fewer benefits than the partners expected.
What’s the problem? A host of culprits—from misaligned strategic goals, unclear governance, and inadequate approaches to talent management problems and operational inefficiencies—at every step of the process.
Our joint venture consulting services also include a comprehensive suite of advisory services, perspectives, expertise, and tools to help companies navigate the joint venture landscape—from start to finish.
The most promising—and challenging—joint ventures today are international. Since 2014, we’ve advised nearly 500 international joint ventures, strategic alliances, and other business collaborations worldwide.
BCG was named a leading joint venture and alliances provider in ALM Intelligence’s report, The ALM Vanguard: Joint Ventures and Alliances Consulting 2019, which cited BCG’s advisory work on digital ecosystems as a key factor in enhancing the value of our offering.
BCG helps companies understand and avoid the common pitfalls throughout all five stages of the joint venture life cycle, using our own joint venture checklist and step-by-step playbook:
From financial services, consumer goods, and telecommunications to industrial goods, health care, energy, technology, and more—our case teams understand the unique opportunities and challenges that joint ventures present in each industry. Drawing on their considerable industry expertise, they help clients seize the most valuable opportunities while surmounting the toughest challenges.
Many companies are eyeing divestitures in the current environment. Are they likely to create value? What is the best path to success?
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An early and candid assessment of the two parties' strategic objectives, organizational cultures, and capabilities can sweeten the odds of success.
To boost the chances that a joint venture will deliver the hoped-for value, the partners must address four key priorities.