HomeSituationsOwnership & businessJoint venture under strain
TN/SIT/16
Edition 2027 · effective 1 January 2027
Ownership & business · Joint venture under strain
Two partners built one venture. Their parent companies now want different things from it.
Joint ventures fail at a high rate, often slowly. A Standing Neutral or early mediation keeps the venture working while partners renegotiate.
§ 01What it looks like
Recognise it early. The earliest moment is the cheapest.
What you notice first
Small, and easy to explain away.
- Reserved matters are blocked
- Secondees report to parents, not the JV
- Funding calls are refused
- Exit options are discussed privately
What waiting can cost
Usually more than the original issue.
- The venture and its staff
- Partner relationships beyond this deal
- Capital invested
§ 02The Neutral route
Usually: Standing Neutral.
A Neutral who already knows the venture can help before the deadlock clause is triggered.
Standing Neutral
The parties decide. The Standing Neutral is available, informed and activated by rule.
Also used · Binding only if the parties sign an agreementMediation
The parties decide. The mediator never imposes.
Also used · AdvisoryNeutral Evaluation
You decide. The evaluator advises.
§ 03The steps
What a good process looks like.
- Identify which decision is blocked and whyBefore anything else01
- Use the JV escalation clause properlyThe moment independence enters02
- Appoint a Standing Neutral or mediatorWhere the work is done03
- Evaluate exit values independently if neededSo it holds04
§ 04Prepare and avoid
What to bring. What to leave out.
(Bring)
01
JV agreement
02
Business plan versus reality
03
Each parent’s strategy
04
Funding position
(Avoid)
✕
Escalating straight to arbitration
✕
Using the JV to pressure the partner elsewhere
§ 05Your version
Every situation is different. Describe yours.
§ 06Related