1. A strategic alliance is an agreement between two or more firms to combine complementary strengths for the purpose of a co-operative business venture
2. A joint venture is a type of strategic alliance in which a new entity is formed with new share capital created (usually a limited company)
3. There are three main types: marketing alliances; technology and know-how alliances; and product and manufacturing alliances
4. Be aware that a strategy (longer term) is different from tactics (shorter term)
5. Alliances should be two-way and mutually controlled so you can both benefit
6. They should be ever-changing and fluid. Have a sunset clause and always consider your exit plan as the partnership might not last
7. Strategies can help a firm to enter new markets, gain technology, create innovation, profit and leverage unit costs
8. For successful alliances the relationship and planning are vital. Make sure the partnership has structure that underlines the benefits, payoffs and rewards
9. When choosing a partner you must ensure they are a strategic fit and can contribute to the partnership
10. Strong and weak partnerships often don’t work. Choosing a firm with experience of strategic alliances may help
    

Paul Holohan, chief executive, Richmond Capital Partners