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Tips and Answers to Your Questions
The Forms of Strategic Restructuring
What is the difference between a merger and a joint venture?
In a merger, two (or more) separate corporations (organizations) come together
to form one legal entity. There are several legal ways to implement a merger,
but regardless of how it is done, the result is one corporation (organization),
not the two (or more) that existed previously.
This is not the case with a joint venture. Two (or more) organizations can
establish a joint venture — project, program, organization, etc. — together,
and jointly administer and govern it, while still maintaining their own organizational
autonomy. With a joint venture, the partnering corporations (organizations)
remain separate.
For complete definitions of mergers, joint ventures, and other forms of strategic
restructuring, see our Partnership Matrix.
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