S2 - E11: M&A Stories on Joint Ventures comparison with M&As with Ivan Golubic

This is a podcast on Joint Ventures comparison with M&As with Ivan Golubic.  

Show Notes: 

Comparing and Contrasting JVs (Joint Ventures) and M&As (Mergers and Acquisitions). The concept of the transaction is very similar between JVs and M&As. You go through the same assessment, due diligence, and planning exercises.  

The biggest difference is that JVs are relationship-based. It is not won-and-done. It is two independent parties who work together for a common purpose and goes over many years (planning, running, and dissolving). 

JVs like M&As are also susceptible to not achieving their results either. Lack of alignment on the approach to achieve goals or poor execution of plans may cause JVs to fail.  It is important to include potential members of an implementation team in the due diligence process. 

In order to control and influence, the most important part of a JV is a governance structure. The governance structure would monitor the objectives and KPIs in such a way that it maximizes the goals of all the parent companies involved. Sometimes it is better to engage a 3rd party to set up neutral governance. 

When companies create brand new JVs, they should create a JV-specific culture within that organization. This is one aspect where a lot of JVs fail to create and continue to extend their own parent’s culture into the JV creating issues and conflicts.  

Relationship and trust are two components of a successful JV. 

Many JVs last longer than the tenure of senior managers in specific roles. Those who had initiated the JVs with specific goals, move on to other roles and thus the initially planned goals may get diluted with new people in the JV roles.  

Ivan Golubic is a seasoned Interim CFO | VP Finance, Legal and Regulatory Affairs. He has extensive experience both in M&A and Joint Ventures.   --------- 

https://www.linkedin.com/in/igolubic/

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The hosts of the interview are: 

- Anirvan Sen, CEO Fifth Chrome: https://www.linkedin.com/in/anirvansen/

- Marcella Hall, HR M&A Expert: https://www.linkedin.com/in/hallmarcella/

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This interview is part of a series run by Fifth Chrome (https://www.fifthchrome.com), a firm that enables experienced professionals to build "Future Capabilities for Business to thrive". 

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Books mentioned: 

- Agile M&A: https://smile.amazon.com/dp/173347451X/ref=cm_sw_em_r_mt_dp_XEQEH8V4RNKESR6HTZE5

- Mergers and Acquisitions Playbook, Mark Filipell https://smile.amazon.com/dp/0470627530/ref=cm_sw_em_r_mt_dp_EK3G3PGT25F52QC4N6HC

- Mergers and Acquisitions From A to Z, Andrew Sherman https://smile.amazon.com/dp/0814413838/ref=cm_sw_em_r_mt_dp_FEQP6ZVBBGWNPAK989W8

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