Hi all, Can someone help with this: Several companies engage in partnerships/alliances (soft) in contrast to hard core M&A. I am wondering how can one compare the risk involved in this process for a peer group of companies to address who is taking more risks in the deals? Many thanks for your thoughts.
isn’t it just a matter of reading the JV docs and figuring out the potential liability/exposure to loss? Not sure how you would compare that to other companies but you can get a sense of what “current market” is for the terms of the partnership and compare. my experience is with real estate development JVs, not sure if that applies to other sectors…
Hi there, Thanks. By allianeces, I meant in-licensing/out-licensing. So the party get reward/options for reward - may be straightaway, contingent on certain milestones of product devlopment, revnue royalties etc. There are no leverage in this kind of deals. A good example would be a big technolgy companies doing such deals with small entreprenuerial company to get access to new products. Thanks Thank y