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Joint venture models that survive the first two years
Manufacturing and technology JVs between international and Turkish companies fail for predictable reasons. A short checklist for the structuring phase.
Bülent Ulusoy, Çiğdem Balcıoğlu4 min read
InsightsJoint venture models that survive the first two years
At a glance
- Define who sells, who controls technology, how ramp-up is funded and how partners exit.
- Most struggling JVs were structured without answering these four questions.
Joint ventures are the most common vehicle for manufacturing and technology cooperation in Türkiye. Most of the ones that struggle were structured without answering four questions.
- Who sells? Market access is usually the local partner’s contribution. Define territories, pricing authority and customer ownership in writing.
- Who controls technology? Licensing terms, know-how transfer and IP ownership need to be settled before the first machine is ordered.
- How is the JV funded through the ramp-up? Under-capitalised ventures stall at the first working-capital gap.
- What is the exit? Buy-out mechanics and valuation principles agreed at the start prevent deadlock later.
Tags
- Joint ventures
