Joint ventures (JV): The strategic edge for transformative transactions

By Patrick Heinemann and Christian Knopf

There is a big trend toward JVs, driven by the need for companies to manage unprecedented change from decarbonization to AI. Get them right and the rewards can be significant – accelerated growth, access to new capabilities and improved risk management. But JVs are complex undertakings. Many fail due to poor planning or execution. We have therefore drawn on our extensive experience in JVs to develop an approach that avoids the pitfalls and ensures long-term success.

Joint ventures are increasingly the go-to choice for companies looking for a shared solution to their biggest and most complex challenges. Their attractiveness lies in the fact they allow companies to jointly pursue defined opportunities by combining complementary assets, capabilities and market access while maintaining organizational independence. Today’s business climate, where digitalization, AI and sustainability are pushing companies to rapidly transform and acquire new skills, is driving their popularity.

But the truth is that many JVs never make it out of the starting blocks. We estimate that around half never get beyond preliminary evaluations, and those that do often don’t reach their potential because of flawed set-ups. To address this, our publication analyzes the complexities surrounding JVs, identifies the key tests to determine if a JV is the right solution to a company’s challenges and outlines the success factors that will make a JV a durable growth and productivity driver.

Is a JV the best fit, and are you ready?

JVs have four main competitive advantages. First, they can provide access to the new capabilities demanded by disruptive developments such as AI and decarbonization. Second, they help to spread risk. Third, they enable faster scaling through combined capabilities, coordinated market rollouts and aligned product roadmaps. Lastly, they extend product reach as each partner brings in new channels, relationships and regulatory expertise.

Despite the these competitive advantages, JVs may not be the right fit for a company’s challenge. Several alternative collaborative models exist, from contractual partnerships to acquisitions, so how does a company know when to choose a JV?

Most important is strategic clarity. JVs have four main long-term goals:

• Create value,
• accelerate timelines,
• drive project flow,
• and improve knowledge.

Once the decision has been taken to pursue a JV, companies then need to rigorously check their readiness.

Set-up and implementation: The key success factors

Our extensive project experience in JVs has also enabled us to explicitly identify the key success factors of JVs. We believe that the most effective JVs are built as independent, purpose-driven entities with clear ownership, efficient governance and a unified culture – designed not to replicate parent structures but to combine strengths, ensure alignment and drive long-term value creation.

So whether you’re planning or implementing a JV, we can guide you through the entire journey and ensure it becomes a vehicle that turns disruption into durable, shared advantage. For more information, download the publication or contact one of our experts.

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