The Advantages and Disadvantages*
of Partnerings and Alliances

* all partnerings are different, each with its own unique advantages and disadvantages
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
  • Less Costly than Buying a Company
  • Cost Savings
  • Product Distribution
  • Diversification into New Markets
  • Manufacturing Capability
  • Reduced Risk
  • Knowledge and Know-how
  • Avoid Need to Reinvent What Has Been Invented Elsewhere
  • The Shoring up of Weak Areas in the Company
  • Strengthened Relationships with Key Suppliers or Customers
  • Ability to Move Quickly
  • Ability to Stay Focused on Core Competence
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

Source: Corporate Partnering: A How-To Handbook, an executive's guide to key partnering practices
Aavailable at 1-800-948-1700 or online by (Clicking Here).

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CPI Partnering Tools
Customer Partnering (Guide to Key Practices) || Executive Partnering Kit
Corporate Partnering Handbook, A "How-To" Handbook
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Key Partnering Checklists for the 11 Most Common Partnering Agreements (table of contents)
Shareholder Buy/Sell Agreements || Letters of Intent || Due Diligence Checklists (table of contents)
One Page Strategy Sheet

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