Choosing the Right Joint Venture Partner 8/12/15

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 Choosing the Right Joint Venture Partner

Staff Size 6 Choosing the Right Joint Venture Partner

Revenue 7

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 MillionsBillions 14 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 Choosing the Right Joint Venture Partner

What is on the Horizon? 21

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 with SBs  Understands this is a “joint” venture  Compatible view in relation to mentor-partner having some ownership in your company 24 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 Agreement  Willingness to invest in the success of the JV 25 Choosing the Right Joint Venture Partner

Questions? 26 Choosing the Right Joint Venture Partner