Joint venture

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A joint venture (JV) is formed when two or more distinct firms combine a portion of their resources to form a separate, jointly-owned entity. Joint ventures differ from mergers and acquisitions. Companies may pursue joint ventures for multiple reasons: to access a new market, particularly an emerging market; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. In several countries, infrastructure development is carried out jointly by the government and private businesses through public-private partnerships, often as joint ventures. Most joint ventures are incorporated, although some, as in the oil and gas industry, are "unincorporated" joint ventures that mimic a corporate entity. For individuals, when two or more persons come together to form a temporary partnership to carry out a particular project, such a partnership is also called a joint venture, in which the parties are co-venturers....

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