A joint venture is a business agreement that brings companies together to develop a new entity. When done right, it expands the capabilities and offerings, allows for cross selling opportunities, and increases revenues for both businesses. By sharing expenses and assets, the companies can build a more significant product or service.
But some remain doubtful of join ventures. Negative reactions have centered on unrealistic objectives, clashing cultures and different management styles. The goal is to first find the right partner with the right combination of services, talent, experience and client base. Then, you must formulate the joint venture to not only enhance the service to clients but further develop employees and capabilities. The secret is in the selection. Finding the right partner is critical when bringing companies together for a joint venture.
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For example, CorTech recently formed a joint venture with MSI International to develop a robust offering for their clients while leveraging the expertise related to both. This joint venture creates synergies and increased activities to formulate new ideas, solutions and options without the need to hire more staff or build a separate program or offering.
“We are committed to providing diversified workforce solutions that offer a competitive edge,” said MSI International CEO Eric Lindberg. “This joint venture will allow us to satisfy the needs of our clients while strengthening both companies,” said CorTech CEO Vincent Rossy.
Joint ventures are an evolution that provides extended services for clients and enhances the world of work for employees.
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