Assessing risks in partnerships/alliances all, companies, contrast, involved

firat

Hi all,
Can someone help with this:
Several companies engage in partnerships/alliances (soft) in contrast to hard core M&A. I am wondering how can one compare the risk involved in this process for a peer group of companies to address who is taking more risks in the deals?
Many thanks for your thoughts.

NakedPuts2011

leverage ratios, percentage of ownership, amount of debt taken to finance this venture etc

simeezee

Hi there,
Thanks. By alliances, I meant in-licensing/out-licensing. So the party get reward/options for reward - may be straightaway, contingent on certain milestones of product devlopment, revnue royalties etc.
There are no leverage in this kind of deals. A good example would be a big technolgy companies doing such deals with small entreprenuerial company to get access to new products.
Thanks

krause2

I think you’re going to have a hard time getting much info on these kinds of relationship

Walex

i would think the capital invested, decisioning power, and the payment allocation hierarchy in case of a failed investment will matter