Strategic Alliance Agreement

Alliance is an approach in which two or more companies agree to pool their resources together to form a combined force in the marketplace. Unlike a merger, an alliance does not involve the emergence of a new combined entity.Therefore joint ventures are indeed a very common entry strategy for companies.

Joint Venture. A joint venture is a child company of two parent companies. Equity Strategic Alliance. Non Equity Strategic Alliance.

A contract is an agreement that two or more parties enter into that is legally binding and enforceable by a court.A contract must include all relevant information about the exchange. Essentially, anyone can draft a contract on their own; an attorney is not required to form a valid contract.

Gain new client base and add competitive skills. Enter new business territories. Create different sources of additional income. Level industry ups and downs. Build valuable intellectual capital. Affordable alternative to merger/acquisitions. Reduce risk.

Determine if the company you want to partner with is right for your business. Create a plan for the alliance. Create a proposal for the alliance. Submit the proposal. Once you're tendered the strategic partnership proposal, the recipient may have questions or want to make changes.

A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

Drafting a contract. Provide details of the parties. Describe services or results. Set out payment details. Assign intellectual property rights. Explain how to treat confidential information. Identify who is liable indemnity. Provide insurance obligations.

Get it in writing. Keep it simple. Deal with the right person. Identify each party correctly. Spell out all of the details. Specify payment obligations. Agree on circumstances that terminate the contract. Agree on a way to resolve disputes.

There are three types of strategic alliances: Joint Venture, Equity Strategic Alliance, and Non-equity Strategic Alliance.