Joint ventures can be tremendously successful. But certain sins during the planning phases can be deadly:
• Gluttony – Devouring the initial capital, leaving no resources for critical investments down the road.
• Wrath – Failure to reach a compromise due to both parties’ desire for control.
• Lust – Desiring another partner’s assets while undermining the inherent trust in the agreement.
• Pride – Valuing one company’s culture and methods over the other.
• Greed – Unrealistic expectations when it comes to profit distributions.
• Envy – Failure to set reasonable boundaries to mitigate competitive interests between companies.
• Sloth – Waiting around during the planning phase before devising an effective exit strategy.
– Patricia E. Farrell, Meyer, Unkovic & Scott