Parties in a strategic partnership may choose to create a separate entity in which they share ownership. This company is referred to as joint-equity. The parties decide the percentages of the business they own. They generally sign a Memorandum of Understanding and a joint enterprise agreement that specify the role and participation of each party in the joint venture. The joint venture contract, a legal contract, is particularly important because it tends to have more legal influence. If the parties do not create joint-equity, their agreement generally has a more limited time frame, but should nevertheless be outlined through a legal contract. Their agreement could also indicate the timing of their partnership. Now let`s look at each of the five types of strategic partnership agreements. A common strategic partnership is that a company offers engineering, manufacturing or product development services and works with a small company or inventor to develop a new specialized product. Typically, the largest company provides the necessary capital and capabilities for product development, marketing, manufacturing and distribution, while the small company provides specialized technical or creative know-how. Many modern companies relocate their accounting entirely to strategic partners.

Strategic financial partnerships are useful because, for example, if you use a dedicated accounting company, they can monitor your revenue more strongly than internally. Because finance is essential for every business, strategic financial partnerships are one of the most important relationships you can maintain. A strategic partnership agreement must meet the needs of all parties involved. To do this, each company`s decision-makers and their legal counsel must work together. Among the areas they`ll be working on are some good examples of strategic partnership agreements between brands you may have heard of, Starbucks in-store coffees in bookstores in Barnes and Nobles, HP and Disney`s ultra-high-tech mission: space attraction and Nokia and Microsoft`s joint partnership agreement for the construction of Windows Phones. That is also why the various strategic partnerships we mentioned in this article exist between some of the biggest names in the industry. Cooperation in a strategic partnership has worked for major players such as Nokia and Microsoft, and with careful planning, it can also work for your business. It`s about taking the leap and saying, “I`m doing” a strategic partnership agreement. Creating a strategic partnership can be complex due to several intricacies in areas such as negotiation and intellectual property. For these reasons, it is necessary to have clear agreements.

A non-equity alliance occurs when two companies agree on a contractual relationship that allocates resources, assets or other resources. Many examples of strategic partnerships are also considered non-equity alliances. For a strategic partnership to work effectively, each party`s contributions must be clearly stated in a written contract.