| Advantages
of Partnerings and Alliances |
- Improved Cash Flow
- Reduced Overhead
- Improved Access to Capital
- Obtain Capital
- Credibility
- Access to Facilities and Technology
- Access to Expertise
- Ability to Keep the Company Small
- More Products to Sell
- Innovative Products
- Creative People
- Speed and Flexibility in Delivering New Products
- Ability to Hedge Your Own R&D Effort
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Less Costly than Buying a Company
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Cost Savings
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Product Distribution
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Diversification into New Markets
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Manufacturing Capability
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Reduced Risk
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Knowledge and Know-how
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Avoid Need to Reinvent What Has Been Invented
Elsewhere
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The Shoring up of Weak Areas in the Company
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Strengthened Relationships with Key Suppliers
or Customers
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Ability to Move Quickly
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Ability to Stay Focused on Core Competence
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| Disadvantages
of Partnerings and Alliances |
- Sharing of Future Profits
- Foreclosure of Other Opportunities
- Barriers to Future Financing Opportunities
|
- Distractions
- Creating a Competitor or a Potential Competitor
- Unexpected Disappointments and Headaches from Your Partner
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