TIE SMALL BUSINESS TECHNOLOGY TO MARKETING POWER

A NEW PRODUCT JOINT VENTURE BETWEEN A SMALL COMPANY WHICH SUPPLIES THE INNOVATION AND A LARGE COMPANY WHICH PROVIDES MARKETING CAPABILITY CAN PROVIDE BOTH PARTIES WITH IMPORTANT ADVANTAGES AND DISADVANTAGES. BEFORE ENTERING SUCH AN ARRANGEMENT, THE SMALL ORGANIZATION'S STRENGTHS AND WEAKNESSES MUST BE ASSESSED TO SEE IF A JOINT VENTURE IS THE BEST ALTERNATIVE TO LICENSING OR DIVESTMENT AND TO CHECK OUT THE LEGAL TECHNICALITIES OF JOINT VENTURES. IF IT IS BEST, THE SMALL COMPANY SHOULD SEEK A LARGE PARTNER WITH STRENGTHS WHICH IT LACKS, WITH AN EXTENSIVE AND ESTABLISHED MARKETING ORGANIZATION, AND WITH AN AGGRESSIVE ATTITUDE. THE RIGHT TOP MANAGERS OF COMPETING POTENTIAL PARTNERS MUST BE FOUND AND NEGOTIATIONS STARTED. FULL DISCLOSURE BETWEEN THE PARTIES IS CRITICAL. THE TERMS OF THE AGREEMENT AND OPERATION OF THE JOINT VENTURE ARE DISCUSSED.