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Real Estate Joint Venture Exit Strategies: Planning for the End at the Beginning; Drafting to Protect Client Interests

Types of Strategies; Timelines and Triggering Events; Valuation; Financial and Regulatory Concerns

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Thursday, June 20, 2024

Recorded event now available

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This CLE webinar will discuss key considerations for creating an exit strategy for a commercial real estate joint venture (JV) that should be incorporated into the JV agreement. The panel will discuss issues common to all exit strategies and those that may be unique to the strategy selected. The panel will also offer best practices for drafting the exit strategy to protect client interests and minimize risk.

Description

One of the most important considerations when forming a commercial real estate JV is how to exit the venture if necessary. Although it may seem counterintuitive and be furthest from the minds of the parties just entering the venture, well-crafted exit strategies are a fundamental part of the JV relationship and are necessary to minimize risk, protect clients' financial interests and assets, and ensure a smooth transition when the time comes to exit the relationship.

Key components of exit strategies include determining the timeline for the exit and identifying triggering events; establishing methods for valuing the JV's assets and parties' interests in the venture; specifying in what manner a party's interests may be disposed (e.g., sale or transfer) and the approval rights of the other parties. Financial and tax implications should also be considered as well as methods of dispute resolution.

Listen as our expert panel provides counsel with key negotiation and drafting considerations when incorporating exit strategies into commercial real estate joint venture agreements and offers best practices to minimize client risk.

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Outline

  1. Introduction: the importance of JV exit strategies
  2. Key negotiating and drafting considerations
    1. Types of exit strategies; risks and benefits
      1. Sale
      2. Buyout
      3. Dissolution
      4. IPO
      5. Recapitalization
      6. Others
    2. Financing and tax implications
    3. Related parties
    4. Timing
    5. Regulatory concerns
    6. Dispute resolution
    7. Remedies
    8. Other considerations
  3. Practitioner takeaways

Benefits

The panel will review these and other important issues:

  • What are common types of exit strategies for JVs? What are the risks and benefits of which counsel should be aware?
  • What are considerations common to most exit strategies?
  • What considerations are unique to certain types of exit strategies?
  • What financial and tax considerations should be incorporated into exit strategies?
  • What regulatory considerations should counsel be aware of when creating exit strategies?

Faculty

Alsaygh, Albert
Albert Alsaygh
Attorney
Cleary Gottlieb Steen & Hamilton

Mr. Alsaygh focuses on real estate transactions and related matters. He regularly advises high-profile clients on...  |  Read More

Lanzkron, Joseph
Joseph Lanzkron
Partner
Cleary Gottlieb Steen & Hamilton

Mr. Lanzkron’s practice focuses on real estate, corporate, and financial transactions. He regularly advises...  |  Read More

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