Drawbacks Of Forming A Joint Venture

Law360, New York (January 28, 2014, 2:58 PM EST) -- Although joint ventures present many potential benefits for the parties involved, they are not without drawbacks.

Loss of Corporate Opportunities

One of the primary drawbacks of a joint venture is that the participants lose the ability to pursue certain corporate opportunities on an individual basis. Because joint-venture partners invariably continue their existing businesses while undertaking the collaboration, in order to ensure the success of the joint venture they must address any areas of potential conflict between their respective businesses and the business of the venture at...
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