Preliminary Assessment

• Begin by identifying and shortlisting potential JV partners based on business needs.
  
• Assess strategic fit, market presence, technological capabilities, and reputation.
  
• Conduct background research through public records, websites, and third-party sources.
  
• Review the partner’s corporate structure, key management, and existing collaborations.
  
• Determine the partner’s intent and objectives for entering the joint venture.
  

Legal Due Diligence

• Examine the legal status of the partner’s entity, including incorporation documents and compliance history.
  
• Review ongoing or past litigation, disputes, and regulatory violations.
  
• Verify ownership of assets, licenses, intellectual property, and key contracts.
  
• Ensure compliance with applicable laws such as corporate, tax, labor, and environmental regulations.
  
• Review the terms of current JV agreements or shareholder arrangements, if any.
  

Financial Due Diligence

• Analyze the partner’s audited financial statements, cash flow, and balance sheet for the past 3–5 years.
  
• Assess liabilities, debt levels, tax obligations, and contingent exposures.
  
• Review profitability, revenue trends, and financial ratios.
  
• Evaluate the partner’s creditworthiness and funding capacity for the JV.
  
• Identify any financial risks that may affect joint venture operations.
  

Operational and Commercial Due Diligence

• Evaluate the partner’s business model, client base, supply chain, and operations.
  
• Assess production capabilities, technology platforms, and quality controls.
  
• Review sales performance, market share, pricing strategies, and distribution networks.
  
• Examine existing vendor, customer, and employment agreements.
  
• Understand operational synergies and integration challenges with the JV’s scope.
  

Strategic and Cultural Alignment

• Assess alignment of vision, mission, and long-term goals between both parties.
  
• Evaluate the compatibility of management styles, decision-making practices, and corporate culture.
  
• Conduct joint meetings or workshops to test working relationships.
  
• Identify potential conflicts in governance, control, or risk appetite.
  
• Ensure shared understanding of growth plans, capital commitment, and exit strategies.