Why do so many joint ventures fall apart? During our Coffee Break, we took a light-hearted look at the most common reasons for joint venture failures — from exit strategies without real exits and deadlocked decision-making to IP battles and cultural clashes. A quick reality check for anyone considering entering a joint venture “marriage".
Our Key Takeaways
- Treat a JV like a marriage: Success depends on shared goals, mutual trust, clear boundaries — and a well-prepared “prenup” for when things go wrong.
- Plan exit routes early: JVs without clear exit mechanisms risk deadlock, frustration, or costly breakups. Build in buy-sell options, sunset clauses, and triggers from the start.
- Define IP ownership up front: Joint IP is a recipe for disputes unless ownership, licensing, and post-JV use rights are clearly defined.
- Align strategic objectives: Differing agendas — one partner chasing ROI, the other seeking tech transfer — are a common cause of JV drift. Alignment must be tested and maintained over time.
- Compliance is not an afterthought: In life sciences, regulatory missteps are costly. Assign responsibilities early, form joint compliance teams, and follow the strictest standards.
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