Joint Venture Strategy Advice

The Business Issue

Our client has a highly regarded events programme (EP), and a global brand that needs to be protected. Albeit there are important repeat revenues, EP is only marginally profitable. A large international publisher has tabled a partnership proposal. After some months of discussion the strategic bidder is impatient and may leave the negotiating table. Our client (a professional institute) turned to us for advice on its options.

Solutions

Key inputs from Bertoli Mitchell were:

  • Detailed interrogation of EP’s trading history and financial projections
  • Identification and assessment of suitable potential joint venture partners
  • Detailed financial analysis and risk assessment of current proposal from the strategic
  • Review and comment on valuation (income share, ratchet, term, exit mechanism and valuation)
  • Review, analysis and assessment of potential partners
  • Assessment of other, non-JV options
  • Communication to, and management of, constituencies throughout the process

Result

The parties agreed improved terms within 6 weeks, and a transaction was completed.

​Client name not given for reasons of confidentiality.

 

 

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