Why Joint Venture?
Collaboration, Collaboration, Collaboration!
I love collaboration, for me it’s the essence of good business. Find partners with common values and a shared purpose and business becomes both more interesting and more rewarding.
For me, Joint Ventures are the ultimate form of collaboration. You are in it together – l love it!
I am from time to time asked the question;
“Why Joint Venture?”
Some would prefer to run all their projects themselves, taking all the rewards and of course, all the risks.
There are many reasons why Joint Ventures can be the answer in some circumstances (of course I recognise that Joint Ventures are not the answer in all circumstances).
What might be the reasons for Joint Venturing? Here is a small selection.
- To obtain access to skills you don’t have – you might be a land owner, joint venturing with an architect or developer.
- To obtain access to capital – you might be a developer with capital deployed in other projects, when a fantastic opportunity arises. Your Joint venture partner may provide the capital.
- To share risks – property is cyclical and carries its own set of risks. By joint venturing, those risks are shared. If problems are encountered there are more parties capable of exploring solutions.
- To scale your business quickly. A Joint Venture can offer the opportunity to take on more projects or larger projects. This can radically accelerate growth plans.
- To access more opportunities. By its very nature joint venturing will increase the size of your network. An increased network will bring you greater opportunities.
So, there you have it, some of my answers to the question,
“Why Joint Venture?”.
I’d love to hear your thoughts or indeed any counter arguments. Direct Message me on LinkedIn or drop me a note to firstname.lastname@example.org.
MacKenzie Byrne structures Joint Ventures for residential developers. We work with property funds, syndicates, private investors, family companies and family offices. We welcome enquires from experienced developers and experienced investors. Private message me to discuss collaborations.
Sean O’Leary is founder of MacKenzie Byrne Ltd, a family company specialising in Property Joint Ventures, Development Finance and FD Advisory. Sign up to our monthly newsletter and receive the latest market news, and early access to property joint ventures and investment opportunities