Joint venture disputes: How can I resolve them?
Published 26 Jun 2017
Joint ventures are a great way for businesses and corporations to partner together in pursuit of a shared goal; however, there can often be bumps along the way. Entrepreneur estimates that between 40 and 70 per cent of joint venture efforts fail, for one reason or another.
In many cases, issues between partners can be amicably resolved in-house. However, larger problems might require the service of a Parramatta business lawyer to mediate and diffuse the situation.
Resolving joint venture disputes
Like many business problems, joint venture disputes are time sensitive. Issues that cause corporate gridlock can end up costing a great deal of money, or even compromising the entire venture, according to Water Street Partners. For that reason, it is of paramount importance that parent companies work to find a solution as soon as possible.
Here are some ways that partners can move towards reconciliation in the case of a joint venture dispute.
1. Lay out the terms
This is, of course, a step that should already have been taken before the venture was set in motion. Parent companies must ensure that they are on the same page about the goals and needs of the enterprise, as 'insurmountable culture clash' is one of Water Street Partners top three reasons why joint ventures tend to fail.
Inc.com suggests that this can be especially difficult for small businesses because they have much more to lose, especially if partnering with a larger firm. If there is an issue regarding the terms, partners should revisit the initial agreement and edit it appropriately to reflect the current situation.
Communication is one of the most important components of any collaboration, especially joint ventures. The two (or more) parties involved in the enterprise could have very different approaches to business, and Inc.com says that this could cause tension and a lack of cooperation.
If one partner is feeling shortchanged by the agreement or has other issues with the situation, being open and honest with the rest of the people involved is the best course of action.
3. Enlist the help of a lawyer
As easy as it would be if all issues were solvable through open communication, there are some conflicts that require a more in-depth process in order to be worked out. If your joint venture is in need of mediation, arbitration or if you are planning on taking your case to court, you'll need the help of a Parramatta commercial lawyer.
Get in touch with Malouf Solicitors today to hear how we can help you.
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