Joint Venture (JV)

In simple words, a joint venture (JV) is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity. Each party contributes assets, knowledge, or expertise. They also share risks, profits, and losses in the venture. Unlike mergers or acquisitions, joint ventures maintain the independence of the involved companies. They create a new, jointly managed entity for a defined goal. JVs are common in industries like technology, real estate, and manufacturing. This allows businesses to enter new markets, innovate, or leverage each other’s strengths without fully merging their operations.