JV Partnership for New Products

A global industrial company, “Alpha,” saw an opportunity to expand its portfolio to existing customers but lacked the product technology. A small, closely-held company, “Delta,” had product technology and wanted to grow but no market access. Alpha offered to acquire, but Delta’s owner was not ready to sell the business.   

We developed a working relationship between the companies and constructed a joint-venture agreement with future buyout terms. Delta provided intellectual property, product development, and manufacturing capability in the agreement, and Alpha provided sales resources, logistics support, and capital. This creative strategy provided a win-win for both companies and put them together on the path of rapid growth. 

Technology Strategy

The scientists of a materials-based company created a groundbreaking polymer material but did not understand its full commercial viability. We led a cross-functional team of both company experts and selected external experts and mapped out potential markets and applications. We then conducted an external market evaluation with industry experts to validate the concepts. 

Working with the technology team, we agreed on a development timeline and budget along with product viability checkpoints and metrics. We integrated several external partnerships to support prototype testing and feedback. Our clear, realistic execution plan, paired with the selected early-adopters, put the company on the road to a successful product launch. 

Commercial Due Diligence

The research and development team of a Tier-2 automotive supplier had created a high-temperature bearing product that required a significant capital investment to bring it to the market. In addition to building a financial model, we conducted an extensive market study and interviewed potential customers in the automotive and industrial sectors. We thoroughly reviewed the competitive technology landscape, including assessing technology developed at NASA and evaluating acquisition candidates.

We advised the company to collaborate with a vendor in an unrelated industry with expertise in manufacturing high-temperature products, which allowed them to bring the product to the market in less than a year. As a result, the product became the company’s fastest product to reach $1 million in sales and the most successful new product line in over ten years.