How to End a Joint Venture Painlessly

During your ongoing business dealings, you may findDuring your JV partnership, you may have shared
that your markets change, your customers grow andsome confidential information about you personally
diversify into other demographics, and even yourand/or business. Talk with your JV partner during
products or services may modify into somethingyour closing discussions to assure that certain
new. This can also be the case for your joint ventureinformation concerning you, your business, or your
partner's business as well. If you find this happensbusiness clients does not get exposed. And, of
and your JV cannot adapt with the changes, or yourcourse, be willing to keep the secrets of your JV
JV is on the road to termination for any reason, herepartner as well.
are some things to think about that will make yourFuture Income and Expenses
JV dissolution easier and painless.Even if you and your JV partner dissolve the venture
Buy Outtoday, there may still be some residual business that
If you and your JV partner formed a separate jointmust be handled and agreed upon. Determine who is
venture company, you may want to discuss havingentitled to future residual income from the JV
you or your partner buy the other out. If theactivities, and who is responsible for making
business strategy still works, but you or your JVpayments to unpaid vendors. You will also need to
partnership is calling it quits, then it makes sense todecide who will handle the bookkeeping of the future
try and continue the business venture. If you wish toincome and expenses if the activities do go on.
buy out the enterprise, you could try it on your own,Even if you and your JV partner drew up an
since the business flow has already been established,exceptional JV agreement and included an exit clause
or you could try to recruit another JV partner toand strategy, there will most likely be some issues
keep the new business going.that need to be resolved. A good plan in the
Intellectual Propertybeginning can help your exit be more smooth and
Did you and your JV partner share intellectual orpainless, but continue your dissolution with a positive
proprietary information? You will want to discuss howattitude and business-like manner so that your closing
to unbundle your respective proprietary products ornegotiations will come to a friendly conclusion.
services and even sign a non-disclosure agreementWorking to keep trust between you and your JV
(NDA) to assure that important business secrets arepartner can go a long way to continuing good
not revealed on either side of the JV partnership.relations with others in your business community.
Confidential Information