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Þ Are they a centralized organization or a decentralized one? Do they look globally or regionally? |
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With the comparison of company cultures, if you find differences, the question needs to be asked whether or not these differences are detrimental or could be disruptive to an efficiently functioning alliance. If there is a concern over the ability to work within or through your potential partner's culture (i.e., conflicts or concerns over intercompany or personal chemistry), perhaps it is better to look for another partner. |
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An additional point that should be addressed here, or earlier, is the need to conduct effective and thorough due diligence of and by both parties. Both should be comfortable with what they have and/or can offer, as well as what the other has and offers. If there is any question in this regard, now is the time to object, not after the contracts are signed. Although, in most cases, every effort is made by both parties to learn all that they can, there is a chance that some things may be overlooked or their importance may not be fully realized. Many of these kinds of things can be, and are, found only after both parties are actively involved in the project itself. Based on this realization, it is important to ensure that mechanisms are put in place to effectively deal with these types of issues. One of the key outcomes of due diligence efforts, from both perspectives, is to assure the partners that the other has what they say they have and can do what they say they can do, when they say they can do it. |
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VI.
Marriage: Consummation of the Event |
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Prior to the actual event, there is a period of engagement, where there is generally a more intimate relationship defined by sharing of confidential information. Unfortunately, at this stage, there are often meetings of the appropriate executives and lawyers, but rarely of the individuals who will actually be involved in the project or work at hand. Therefore, in many cases, contracts are signed and cooperation is defined on paper, with all of the best intentions, but without a real understanding of how it will work in the real world. |
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Hopefully, at this point there is a mutual agreement as to the overall project, the risks associated with it, its stage of development, and commercial/economic potential. If there is disagreement and/or an unclear picture of any one of these elements or if there is an unrealistic expectation of the potential value or benefit to be gained from participating in the alliance, there will, likely, be a souring of the relationship sooner rather than later, |
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