Seventy-five percent of joint ventures fail within their first year. And the top two reasons they fail are lack of due diligence, and partners not agreeing firm goals from the start. These insights were revealed by Robert Hager, Managing Partner of Patton Boggs, at QSTP’s TECHtalks last night at the Diplomatic Club.
“Joint ventures fail because they are put together too quickly” Hager explained. “Add into the mix cultural differences and different concepts of time, risk and reward when taking on an international partner, and you really have to lay your groundwork. You need to spend a lot of time planning and negotiating to ensure a successful venture”.
Hager also stressed the need to plan what happens in case the joint venture doesn’t succeed. Although business partners can feel uncomfortable talking about failure, having a clear and agreed process up front can save much time and money in arbitration down the road.
Around fifty guests attended this month’s TECHtalk. For Randy Sonmor, an Internal Consultant for Qatar Petroleum, it was his first time at the networking seminar. “This is a timely discussion to be involved in at this stage in Qatar’s growth, and it touched on many of the essential things that people need to look at when starting a joint venture – it was practical, helpful and thorough, especially when looking towards privatisation for smaller business” he said.
The QSTP TECHtalks continue in November. Registration for alerts can be made at www.qstp.org.qa
Qatar Science & Technology Park fosters the development and commercialisation of technology in Qatar, a rising star in the Arabian Gulf with the world’s third largest gas reserves and a remarkable vision for human development. As part of the renowned Qatar Foundation, founded by the country’s Emir, the science park is co-located with campuses of Carnegie Mellon, Texas A&M, Weill Cornell and other premier universities. It provides research-friendly premises for companies from around the world, plus an incubator and investment for technology start-ups. Already EADS, ExxonMobil, GE, Microsoft, Rolls-Royce, Shell and Total have joined Qatar Science & Technology Park, and its first phase of buildings opens late 2007.
www.qstp.org.qa
