Choosing the Right Joint Venture Partner 81215 Choosing

Choosing the Right Joint Venture Partner 8/12/15

Choosing the Right Joint Venture Partner Pairing any Small Business with any Large Business will not automatically produce a successful Joint Venture Team. This is important because. . . 2

Choosing the Right Joint Venture Partner It takes a strong coordinated effort of compatible partners to result in the Joint Venture being successful. This brings up the question. . . 3

Choosing the Right Joint Venture Partner What factors do large businesses usually consider in selecting a SB Joint Venture partner? 4

Choosing the Right Joint Venture Partner SBA 8(a) M-P vs Non-SBA 8(a) M-P CFR 124. 513 5

Choosing the Right Joint Venture Partner Staff Size 6

Choosing the Right Joint Venture Partner Revenue 7

Choosing the Right Joint Venture Partner Financial Stability – Steady Growth Curve vs 8

Choosing the Right Joint Venture Partner Complimentary Technical Capabilities 9

Choosing the Right Joint Venture Partner Similar Client Base 10

Choosing the Right Joint Venture Partner Excellent Safety Rating 11

Choosing the Right Joint Venture Partner Bonding Capacity 12

Choosing the Right Joint Venture Partner Additional Socio-Economic Designations 13

Choosing the Right Joint Venture Partner There needs to be agreement in advance about the clients, size, and types of contracts the JV plans to pursue Thousands 14 Millions Billions

Choosing the Right Joint Venture Partner Ability to “carry your share of the load on proposals” Example: Resumes, project descriptions, costing, and writing = $ $ 15

Choosing the Right Joint Venture Partner Sufficient business infrastructure or commitment to put it in place DCAA accounting systems and procedures in place to support the systems 16

Choosing the Right Joint Venture Partner Length of time remaining in 8(a) program 17

Choosing the Right Joint Venture Partner Willingness to commit resources necessary to put together documents required to establish Mentor. Protégé Agreement (if applicable), JV agreement, Supplemental Information and reports 18

Choosing the Right Joint Venture Partner If pursuing 8(a) Mentor-Protégé JV, a willingness to contribute to success of the Mentor-Protégé Agreement with resources, designated lead, making staff available for training and reporting, etc. 19

Choosing the Right Joint Venture Partner Knowledge of SB 8(a) and JV regulations - Existing Guidance - Proposed Guidance - Affiliation Rules 20

What is on the Horizon? 21

Choosing the Right Joint Venture Partner Very good to excellent relationship with SBA representative 22

Choosing the Right Joint Venture Partner What important question hasn’t been answered? 23

Choosing the Right Joint Venture Partner What should SB look for in a JV partner? - Past success with client(s) - Trust - Willingness to mentor (their record) - Positive past subcontracting performance / working - 24 with SBs Understands this is a “joint” venture Compatible view in relation to mentor-partner having some ownership in your company

Choosing the Right Joint Venture Partner What should SB look for in a JV partner (cont’d)? - Size - Complimentary technical capabilities - Financial stability - Excellent past performance - Excellent record with clients you want to pursue - Willingness to mentor in or out of Mentor-Protégé - 25 Agreement Willingness to invest in the success of the JV

Choosing the Right Joint Venture Partner Questions? 26