Joint ventures are entered into for many reasons and a primary reason is to increase value. Recently, two large companies, that are well-known in their respective industries, announced their future plans to create a joint venture. The joint venture between the two businesses may impact similar California industries.

One of the companies intending to enter into the joint venture is Sterling & Sterling, which is an insurance agency. The other company that intends to enter into the joint venture is The Hyde Agency. The intended joint venture between these two companies will be called SterlingHyde.

The business model behind SterlingHyde intends to create a business that provides comprehensive solutions regarding property and casualty insurance and underwriting. The intended clientele of SterlingHyde is both international and domestic. The joint venture will combine the knowledge and expertise of the two joining companies and the combination will provide clients with more than 170 years of experience.

Although both parties have expressed their desire to finalize the joint venture and also expresses their enthusiasm and appreciation for one another, the joint venture has not yet been finalized. Many steps need to be completed before a joint venture can be finalized. One of the primary issues that need to be finalized prior to the implementation of the joint venture is the terms of the control of the new business. These decisions not only have to be decided on by the individual businesses, but also in a cooperative method between the two companies. The expected date of the implementation of the joint venture SterlingHyde has not been released.

Source: Sacramento Bee, “Sterling & Sterling, Inc. to form Joint Venture with The Hyde Agency, Surety Bond Experts,” Sterling & Sterling, Aug. 9, 2012