A strategic alliance is a long-term, mutually-beneficial relationship formed between two or more companies to attain agreed-upon goals while remaining independent entities. Each party contributes its specific strengths–such as technology, customer base or marketing expertise–to help the alliance relationship grow. Strategic alliances come in several forms and degrees of cooperation–from simple referrals to more complex operating relationships.
Find out about the strategic alliance flat fee service package we offer!
A Cautionary Client Tale
How one client lost money and a potential business ally by failing to obtain a written strategic alliance agreement.
Why Strategic Alliance agreements are important
Strategic alliances are an effective way for companies to combine their complementary skills and assets to attract more clients, achieve economies of scale, increase credibility and brand awareness, and provide added-value to customers.
Increasingly, small and mid-sized companies are using strategic alliances to expand their capabilities with minimal added expense. However, a successful strategic alliance must have a sound foundation of accountability and clarity or it can lead to misunderstandings, mistrust, loss of business and costly litigation.
How Kaufman Law PLLC can help
Few companies truly comprehend what a strategic alliance really is, much less how to set one up successfully. But as we have formed our own strategic alliances with several legal and business services partners, we understand first-hand the possibilities–and potential pitfalls–that strategic alliances entail.
We work closely with our clients to ensure they fully leverage their business relationships and help them create strategic alliances that are truly “mutually-beneficial.”
Kaufman Law PLLC provides sound legal advice and assistance for a wide range of strategic alliance matters, including:
- Defining realistic objectives and targets
- Setting the roles each partner plays in the alliance
- Allocating each partner’s financial (and other) contributions
- Developing dispute resolution procedures and exit strategies
- Setting payment terms for the products/services the alliance will offer
- Establishing rewards and penalties for poor performance
- Creating finder’s fee arrangements
- Securing usage rights for intellectual property created among partners
Get info on our strategic alliance flat fee service package that can meet your needs by visiting our Flat Fee Attorney Pricing page.
A Cautionary Client Tale
Without seeking legal advice, a graphic designer rushed headfirst into a partnership with a large marketing firm, assuming this alliance would help her attract more Fortune 500 clients. However, the fee structure was never clearly established and there was no formal written agreement to define key terms of the agreement.
When the marketing firm ran out on the project and pocketed the fees, the designer had to complete the project herself at a financial loss. In order to recoup the lost income, she would have had to file a lawsuit against the marketing firm at considerable time and expense and with no guarantee of success.
Ultimately, this hastily-formed strategic alliance, created with no professional legal guidance, ended up hurting our client’s business, not helping it as she had intended.