DEFINING THE FUNDAMENTALS OF A JOINT VENTURE

Three companies in the e-commerce and logistics sectors approached Stratega to structure the governance of a joint venture and shape its business model.

overview

NEW VENTURE

The e-commerce and logistics companies together represent a venture worth 300 million reais and were counting on an investment fund to start the joint venture.

opportunity

FIRST STEPS TO UNION
The trio of companies identified the opportunity to create a marketplace orientated towards the seller and not just the buying customer, thus offering an attractive solution for all users of the service. The first steps towards this union would be to bring together the expertise of the three businesses and have specialised support to set up the strategic planning. However, when they consulted Stratega, the company realised that before they could even start planning, the group of executives needed to work on their capital structure and corporate governance first.

tools used

  • Value Drivers
  • Business Models
  • If It Doesn’t Exist, Create It
  • Platform

approach

TOWARDS A UNIFIED VISION

Once the scope of the project had been defined, Stratega conducted interviews with the three CEOs individually to map out their wishes and spoke to the investment fund that controls one of the companies. In this first stage, the consultants prepared a study with four alternative business models and their respective value drivers for the joint venture, since this business direction would dictate the group’s governance. Each CEO analysed this material individually and was instructed to choose one of the alternatives that best represented their vision for the future of the joint venture. Stratega’s consultants developed the final business model based on the CEOs’ choices.

The work took place over three months in a hybrid model, with a face-to-face workshop at the start of the project and interviews and online meetings at other stages. 

business model stratagems
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value drivers
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cap table proposal
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results

FOUNDATIONS FOR THE FUTURE

In this project, Stratega led its clients on a journey of shared vision for the future, providing the companies with analyses and guidelines for structured decision-making.

The project’s delivery detailed the joint venture’s business model and its value drivers. Stratega’s team also structured the distribution of the capital table according to the appropriate value drivers for the chosen model and the contributions of each partner company. Lastly, a corporate governance structure was proposed for the new venture. 

All this gave objectivity to the negotiations between the three companies.”

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