"Sullivan & Cromwell's Aquila on Joint Venture Due Diligence" (The Deal)

August 11, 2009

SULLIVAN & CROMWELL LLP Partner Frank Aquila appeared on The Deal's Dealscape: Inside the Deal segment. Mr. Aquila discussed the complexities that arise when the target of a deal is involved in a joint venture. "There may be that key person, the partner in that joint venture, and sometimes there are multiple parties in a joint venture, or the company may have multiple alliances. The problem of course is that in most cases you can't go and negotiate with them." Mr. Aquila noted the pharmaceutical industry as an example that often includes third parties in deals which are usually competitors of the acquirer. "You may have another joint venture that's actually competitive with the joint venture of the company that you are acquiring," he added. Referring to his experience with joint ventures and M&A transactions he said that "these can be the most frustrating parts of many deals, they also can be the most interesting."