When a business must regain control over critical assets

A large US manufacturing company had for several years operated a joint venture (JV) with an Asian partner. However, after the US company discovered what it alleged was anticompetitive behavior by its partner, its board decided to dissolve the venture. But this was easier said than done. The JV did business around the world—indeed, accounting for the bulk of the US company’s European revenues. What’s more, the JV’s structure was complex: partners had varying ownership stakes and degrees of control across several company entities. The US company’s outside counsel engaged AlixPartners to assist in unwinding the JV in a way that would enable the company to keep control of a large share of the venture’s assets. The outside legal team also asked us to help build a case against the JV partner for harming the US company’s reputation.

Expert analysis helps legal counsel negotiate from strength

Our team of economics and valuation experts worked alongside the US company’s legal counsel at the company’s headquarters to complete the intricate process of dissolving the partnership. By conducting a deep analysis of the industry and the operating environment, we became able to determine the value of the JV and calculate damages for reputational harm. During the two-year negotiating period, we also modeled several scenarios for a dissolution process, producing reports on valuation of the JV under each exit structure.

When it really matters

Our efforts helped the US company reach a favorable settlement of the exit negotiations, and the company was able to retain the assets it sought. Our work helped the client regain control of its operations and has since led to additional engagements with the company’s legal team.