| IMD |
| Page: Definition JV Broker |
JV Broker:
A JV Broker is a person with good contacts to businesses and marketers and a good insight into their assets, resources, strengths and weaknesses and the market in general. This knowledge puts him into a position where he can offer initiating profitable JVs between businesses against a commission as a service.
A business which is looking
for a JV partner to undertake a planned project together can
contact a JV Broker and ask him to find a suitable JV partner
and to initiate a contact. A good JV Broker either knows what
company would be the best match for his customer’s needs or he
knows where to find it. If he is successful in arranging a
partnership the JV Broker receives either a fixed commission or
a share of the resulting profits.
A JV Broker can also act out of his own initiative. If he sees
a business that has unused resources because nobody has an idea
that these resources could be used for a profit, he can
approach the manager and suggest a JV with another business
which would profit from exactly these resources.
For example there was a
business selling and installing thermal insulation for roof
tops to save energy. They had a large base of satisfied
customers but couldn’t use this base as roof insulation usually
is needed only once a lifetime. So they had no other product or
service to sell to their customers. A JV Broker told the CEO
that he would know another business operating in this niche –
but not a direct competitor – which would be very interested in
leads having expressed their interest in energy conservation.
Therefore he proposed a JV between these two companies where
the one would make it’s customer files accessible to the other
and in return would receive a commission for every resulting
sale. The CEO happily agreed as neither he nor any of his
managers had ever thought that their customers could be the
source of more revenue for his company. The JV deal was closed,
turned out a real win-win situation for both companies and the
JV Broker received a nice commission.
[Joint comes from Latin junctus, jungere
= to
join together;
Venture is a short form of adventure and comes from
Latin aventura = something about to happen, from
advenire
= to
come about, arrive;
Broker goes back to Anglo-French
abrokur
= middle man, wine merchant and
is akin to Spanish alboroque = gift or drink after the successful
conclusion of a transaction ]
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