Joint Ventures & Alliances Details

Process | Fee Structure | Engagement Steps | FAQ

Our Process

Serica’s unique market position and cross-border transaction expertise enable us to source, negotiate, and close joint ventures and alliances with top-tier companies across China.

JOINT VENTURES & ALLIANCES

  • 1

    RESEARCH & STRATEGY
    Understand the key motives driving your partnership needs and how it fits into your global strategy, conduct cross-border innovation alignment activities, and develop an actionable strategy for success.

  • 2

    IDENTIFY PROSPECTS
    Conduct thorough ecosystem mapping to discover potential opportunities and identify viable prospects before diligently qualifying them and providing you with a shortlist to consider.

  • 3

    DEVELOP PROPOSALS
    Create a series of Chinese pitch decks and other collateral that present your company and core offering with strength and confidence to different stakeholders in a way that resonates locally.

  • 4

    INITIAL ENGAGEMENT
    Conduct meetings with key decision-makers (with or on your behalf), qualify the opportunity and identify three to five high priority targets.

  • 5

    STIMULATE COMPETITION
    Engage with multiple prospects to create urgency and illuminate strategic opportunities that can be effectively leveraged in future negotiations. Then negotiate letters of intent (LOI) from each for your consideration.

  • 6

    DEALSHAPE
    Negotiate term sheets, party contributions, rights & responsibilities (including IP and technology licensing), corporate governance structures, and other key deal mechanics essential to the partnership.

  • 7

    INTEGRATION & TRAINING (OPTIONAL)
    Develop effective internal operations and communication framework along with tailored training courses to enable effective integration between you and your new local partner.

  • 8

    MONITORING & INTERVENTION (OPTIONAL)
    Diligently monitor your joint venture or alliance’s performance, then intervene to preempt (or resolve) any issues or conflict that may occur. In some circumstances, we can even become a non-executive director to provide board governance and strategic oversight.

Fee Structure

Combining a monthly retainer with a one-time, flat success fee (based on estimated transaction value, project complexity, time, and value created) our fee structure is designed to tightly align both our interests towards maximizing the value and success rate of forming an effective joint venture or alliance.

VARIABLES

MONTHLY RETAINER

SUCCESS FEE

(formula)
ETV Complexity
x Time x Value Created =
(formula
(our rates)
$15-35k
(on average)
.
$50-200k
(on average)

Serica does not, under any circumstances, work on a success fee only basis.

Post Deal Integration Solution Fees
  • Integration Negotiation: Charged on a retainer basis, click here for details.
  • Integration Training: $10,000 per day (conducted with both parties)
  • Monitoring & Intervention: >$5,000 per month (based on an annual contract)
  • Board Governance: Charged at our standard board governance rates, click here for details.
Engagement Steps

Our engagement process is designed to be highly collaborative to ensure that we find the best solution for your company as efficiently and effectively as possible.

  1. Receive an initial consultation for free to discuss your goals for the Chinese market and how Serica’s solutions can help you achieve them.
  2. Sign a ‘Mutual Non-Disclosure Agreement’ to protect everyone’s interests. For mutual convenience and security, we send the agreement electronically (via DocuSign) for e-signature.
  3. We outline the basic details of our prescribed solution – covering the key opportunities, time-frames, and value created as well as the estimated project fees (calculated based on the variables above) for your consideration. Where needed, we can prepare a simple presentation with all of the above details to enable smoother internal discussions and decision-making.
  4. Once you have discussed it internally and arrived at a consensus on the broad solution, we will have a follow-up meeting to give you the opportunity to ask any questions and request changes to the scope.
  5. Building upon what was discussed and agreed upon in the previous meeting, we collaborate to develop an ‘Initial Proposal’ covering the precise scope, deliverables, milestones, and operation details.
  6. We conduct a ‘Proposal Review Meeting’ where we both have the opportunity to discuss and further refine the project’s scope, deliverables, and operational details.
  7. Based on discussions in the previous meeting, additional details are added to the proposal, alongside ‘Terms & Conditions,’ transforming the proposal into a legal contract – which will be sent electronically (via DocuSign) for e-signature.
  8. We begin working together to achieve your commercial goals and international ambitions.

Frequently Asked Questions


1. What is the typical length of a Joint Ventures and Alliances project?


Between 4 to 12 months, depending on the scope and scale of the project.

2. Can we pursue multiple joint ventures or alliances across different industry verticals?
Yes, we have the capabilities to negotiate multiple partnerships simultaneously. In most cases, we would advise waiting until the Research & Strategy phase is completed before you commit to such an approach.

3. Can you close deals with prospective partners we have already identified as viable?
Yes, however, we would insist on conducting basic due diligence before engaging with any of them directly. Additionally, best practice dictates that we source additional prospects after the research and strategy phase is complete to maximize the value and success rate of any joint venture or alliance.

4. We are concerned that government authorities may block our ability to form a joint venture or alliance. Can you mitigate the risk of this happening?
Yes. 1) We do not work on projects with ‘clear and direct’ dual-use technologies or any overly politicized sectors (such as telecommunications); the sectors we work in are not typically subject to overtly restrictive policies or laws. 2) We communicate and cooperate with different government departments directly – such as the Chinese Ministry of Commerce, the US International Trade Administration, and the UK Department of International Trade – to stay apprised of changes and, where barriers are applicable, gain practical support to overcome them.

5. Can you reduce the professional fees in exchange for equity in our parent company?
Depending on your company’s fundamentals, corporate structure, and headquarters location, we can reduce our professional fees by a maximum of 50% for equity. Note, we only accept Ordinary or Preferred Shares in your parent company (not your subsidiary) that are transferred in full without any vesting periods.

6. We are a startup that cannot afford your professional fees. Can you still help us?

Yes. Our unique Accelerator Program is designed for innovative early-stage and growth-stage startups.

7. What are your billing cycles?

Our project fees and retainers are billed quarterly, with the first payment due within ten (10) business days of the contract being signed. Our success fees are paid in full at the closing of the joint venture or alliance.

8. Are expenses covered?
No. However, the contract we sign states that all expenses must be pre-agreed in advance and that receipts must be provided before any reimbursement is paid.

9. Are there any third-party fees we will incur?
Yes. At a minimum, there will be legal, banking, and government fees that you will incur. Serica will endeavor, through its network of strategic partners, to keep these costs to a minimum.

10. What currencies do you accept?
USD, GBP, EUR, SGD and CNY.

11. What jurisdictions apply to Serica contracts?
Our default jurisdiction is Singapore due to its advanced legal system and efficient (and cost-effective) dispute resolution. We can accept other well-regarded Common Law jurisdictions such as the United States and the United Kingdom as alternative jurisdictions.

12. Can we sign a Non-Disclosure Agreement before our consultation?

Yes, as long as it is a Mutual Non-Disclosure Agreement with Singapore, United States, Canada, or the United Kingdom as the jurisdiction and signed electronically. Serica has an excellent MNDA that you can review here.

13. Why do you exclusively use digital contracts, proposals, and invoices?

The ability to receive, sign, and pay electronically provides both of us with enhanced security and greater convenience. Learn more.

14. Can you help organize visas, travel arrangements, and source interpreters?
Yes. We can sponsor your visa, help you find hotels, and connect you with reliable (and cost-effective) interpreters.

15. How do you track and report project progress?
We provide you with direct access to our project management software that enables you to track and review our progress in real-time.

16. What else do you need from us?
Serica takes a highly collaborative approach to every project we undertake. Throughout the project, we expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.

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