choosing the right joint venture partner 8/12/15

Choosing the Right Joint Venture Partner

8/12/15

Pairing any Small Business with any Large Business will not automatically produce a successful Joint Venture Team.

This is important because . . .

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It takes a strong coordinated effort of compatible partners to result in the Joint Venture being successful.

This brings up the question . . .

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What factors do large businesses usually consider in selecting a SB Joint Venture partner?

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SBA 8(a) M-P vs Non-SBA 8(a) M-P

CFR 124.513

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Staff Size

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Revenue

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Financial Stability – Steady Growth Curve

vs

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Complimentary Technical Capabilities

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Similar Client Base

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Excellent Safety Rating

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Bonding Capacity

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Additional Socio-Economic Designations

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There needs to be agreement in advance about the clients, size, and types of contracts the JV plans to pursue

Thousands Millions Billions

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Ability to “carry your share of the load on proposals”

Example: Resumes, project descriptions, costing, and writing = $ $ $ $

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Sufficient business infrastructure or commitment to put it in place

DCAA accounting systems and procedures in place to support the systems

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Length of time remaining in 8(a) program

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Willingness to commit resources necessary to put together documents required to establish Mentor-Protégé Agreement (if applicable), JV agreement, Supplemental Information and reports

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If pursuing 8(a) Mentor-Protégé JV, a willingness to contribute to success of the Mentor-Protégé Agreement with resources, designated lead, making staff available for training and reporting, etc.

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Knowledge of SB 8(a) and JV regulations

- Existing Guidance- Proposed Guidance- Affiliation Rules

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What is on the Horizon?

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Very good to excellent relationship with SBA representative

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What important question hasn’t been answered?

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What should SB look for in a JV partner?- Past success with client(s)- Trust- Willingness to mentor (their record)- Positive past subcontracting performance / working

with SBs- Understands this is a “joint” venture- Compatible view in relation to mentor-partner having

some ownership in your company

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What should SB look for in a JV partner (cont’d)?- Size- Complimentary technical capabilities- Financial stability- Excellent past performance- Excellent record with clients you want to pursue- Willingness to mentor in or out of Mentor-Protégé

Agreement- Willingness to invest in the success of the JV

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Questions?

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choosing the right joint venture partner 8/12/15

Documents

right joint venture

right joint venture

sb joint venture partner

successful joint venture

joint venturecompatible

mentorprotg jv

jv agreement

jv partner contd