A Joint-Venture is a business agreement in
which parties agree to develop or create, for a limited time, a new entity and
new assets.
They exercise control over the company and
consequently share revenues, expenses, assets, efforts and
time spent.
This temporary partnership can be:
- Short-term or Medium-term allocation of funds to help to carry an
investment idea until its resale
It aims at achieving an attractive return on the
invested capital after the resale of the shares.
- Long-term allocation of funds to carry an investment idea until its stable
income generation stage
It aims at achieving a profitable return that ensures timely payment of
interest and principal, attractive return on the invested capital, and positive
and consistent cash flows in a finite time.