Business collaborations are a fundamental driver of growth today. However, for any partnership to thrive safely and effectively, having a proper legal and strategic foundation from the outset is essential.
With this objective in mind, UHY Fay & Co, alongside the Madrid Chamber of Commerce, hosted an in-person seminar focused on breaking down the practical keys to Joint Ventures. Held on May 27 at the Chamber’s headquarters (Plaza de la Independencia, 1), the session was designed to provide companies and professionals with clear tools to collaborate, grow, and mitigate legal and financial risks.
Main Highlights of the Session
The seminar was structured to guide attendees in a practical manner, covering everything from project kickoff to exit planning, tailored even for those without a deep legal or financial background.
1. The Joint Venture as a strategic tool and its legal structure
The session analyzed when it makes sense to use a Joint Venture and how to choose the right vehicle to set it up, distinguishing between a corporate JV and a contractual JV.
2. Setting the rules of the game: roles, funding, and returns
A core focus of the event was defining the operational mechanics of the project:
Who brings what: Differentiating between financial and operational partners.
Financing and contributions: Who provides funds, when, and under what investment criteria and business plan.
Profits and divestment: Dividend policies and planning returns after the project concludes.
3. Governance, control, and decision-making
The session explored daily management dynamics, including:
Decision-making processes, reinforced majorities, and casting votes.
Information rights and reporting obligations to maintain transparency among partners.
4. Conflict prevention, management, and exit mechanisms
A major emphasis was placed on anticipating issues—a critical aspect that is often overlooked. Speakers addressed common risks, the handling of deadlocks (deadlock scenarios), and dispute resolution mechanisms.
Additionally, the event highlighted the importance of planning the project’s exit strategy from day one to guarantee flexibility and legal security through share transfer controls, joint divestments, and Buy-Out mechanisms.
Events like this reinforce UHY Fay & Co’s commitment to the business community, delivering specialized expertise to help build lasting and secure partnerships.
