Joint Venture
A joint venture is a business enterprise under-taken by two or more persons or organizations to share the expense and profit of a particular business project. They are agreements between parties or firms for a particular purpose or venture. Joint ventures have grown in popularity in recent years. Among the most significant benefits derived from joint ventures is that partners save money and reduce their risks through capital and resource sharing. Joint ventures also give smaller companies the chance to work with larger ones to develop, manufacture, and market new products. They also give companies of all sizes the opportunity to increase sales, gain access to wider markets, and enhance technological capabilities through research and development (R&D) underwritten by more than one party.
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Buy back arrangements
Provision in a contract under which the seller agrees to repurchase the property / equipments at a stated price upon the occurrence of a specified event within a certain period of time. Or the supplier of the plant / equipment or technology agrees to purchase the goods produced with that equipment or technology. Or a Conversion process i.e supplier of the raw materials will supply technology formulation and purchase as the finished goods as per their specifications.
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Licensed Manufacturing / Franchisee
Any manufacturing Company in one country ( the licenser ) enters in to a agreement with another company in another country ( the licensee ) to use Manufacturing processing ,trade mark or name patent technical assistance etc are provided by the licenser .In exchange the licensee pays the agreed royalties to the licenser It is similar to franchise in service sector that the franchisor gives the permission to the franchisee for use of product, service and trademark. The entire business format is also taught to the franchisee including marketing, selling, inventory, and accounting etc
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Merger and Acquisition
Merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated.This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies, is considered as a merger or an acquisition i.e really depends on whether the purchase is friendly or hostile and how it is announced.
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Counter purchase
Under this agreement the seller receives full payment in cash but agrees to buy an equivalent value of goods from the buying organization with in a specified period.
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Tie up / Affiliate Program / Indenting Agent etc
Manufacturer/exporters/Importers / Service provider or any type of organization can make with another orgaisation for it’s required purpose such as marketing / Distribution/ procurement or indenting agent /representation/event management etc for a certain period as agreed is called tie up or affiliate program.
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