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Benefits of Joint Venture Partnerships

Jeremy Levitt

Legal practitioner and global advisor Dr. Jeremy Levitt has visited 37 countries around the world in providing advisory services to international institutions and non-governmental organizations. As an entrepreneur, Jeremy Levitt founded The Levitt Group, LLC., where he built joint venture partnerships with retail concessionaires.

A joint venture partnership represents a business relationship between two entities who agree to collaborate to pursue a particular project. Forming this contractual relationship has certain benefits, such as:

Shared resources - Business entities lacking in funding or human capital will find that entering into a joint venture partnership supplements these scarce resources. Two companies, each with their individual assets, can combine both human and capital resources to fulfill their shared goals.

Flexibility - Partners in joint venture agreements are bound by temporary contracts, which dissolve upon the completion of the project or an agreed-upon date. Joint venture partnerships need not establish a new business entity, and thereby allow each company to resume its independent operations at the end of the contract.

Shared business risk - In joint venture partnerships, financial risk is significantly lower since each company’s contribution has been diluted. With project investments distributed among partners, the risk of a given enterprise becomes less imposing.

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