How to Properly Structure your Joint Ventures Against Financial Crisis

Mergers are joint ventures. Mergers are often made when one organization buys one organization. The buyer either saves a bankrupt organization or just partners to expand its services.

Classic joint ventures that expand services are financial investment and insurance companies. Being in the same industry—financial industry—, these 2 companies complement each other. Though most joint ventures already have relatively common visions before the ventures were made, organizations end up sharing values, directions and operations. Eventually, the shared directions intensify market reach of each organization and create a new or often niche market.

Shared resources pave this organizational and market changes. Resources often shared are skills, funds, supply, technology, marketing campaigns and markets.

American International Group (AIG) and Philippine American Life and General Insurance Co. (Philamlife) is one merger or joint venture practice. AIG is into non-life insurance and Philam is into life insurance. Though the 2 companies provide different products, they made to work together. Their joint venture expanded their services. With a complete financial investment portfolio, they become a one-stop investment house. Investors do not have to walk around to complete his/her investment. With the joint venture, an investor can have a life insurance, pension, travel insurance, mutual funds, bonds, life protection plan, memorial and education plans, health medical coverage, non-life insurances to protect properties, assets, even body parts.

This one-stop investment house provides investors comprehensive protection program and income generating investment at a cheaper transaction cost. More importantly, AIG and Philam draw more financial capitals for them to earn. Together, they grew their respective assets in a concerted way. They each build their corporate brand stronger and induce more investment confidence that makes financial market and economy healthier.

Financial joint ventures prevent financial crisis, when carefully planned. They could solve such crisis and even displace a small possibility of another Great Depression.

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Rivers Corbett
Founder - JVBusinessSchool.com

"Award Winning Entrepreneur and Joint Venture Specialist, Rivers Corbett offer an exclusive and exciting opportunity to a limited number of entrepreneurs who are looking to steer clear of the typical ''Get Rich Quick'' hype and build a solid business of * lasting *significance. Click on http://JVBusinessSchool.com for more information on this great offer