Getting in to jva with another company
Ravi Jindal
(Querist) 02 November 2017
This query is : Resolved
We are running a company and this company owns a successful brand.
Recently, some development happened with another company working in same domain. We mutually discussed on our future perspectives if we go ahead with partnership.They offered us following things
1. They will work as technology partner of our company (tilll now we are outsourcing technology) and invest Rs. 1 Crore in next 1 year as strategic investment. In return they don't want equity in the company they want to co own the successful brand.
2. They want 51% ownership of the brand, its IPR and right to decide.
3. They will deduct their investment on monthly basis, means they will get the profit(if any) and investment also from the revenue.
4. They have the right to terminate the agreement but we don't.
5. If in any case any party want to leave the brand, second party will automatically become the owner of that brand.
There are many more such clauses which are inclined toward that company and its like that they want to own everything in return they will provide technological assistance with investment.
I want your guidance regarding this
Vijay Raj Mahajan
(Expert) 02 November 2017
Given such big discount just for mere 1 crore investment and technical help is not advisable.
For running successful company getting financial assistance from any financial institute or bank should not be trouble. Technical assistance is being outsourced that can continue till you are able to employee experts in the company on fixed salaries.
Rajendra K Goyal
(Expert) 03 November 2017
Proceed as advised by the expert Vijay Raj Mahajan.
