Strategic Alliances and Joint Ventures: The Stepping Stones to M&A
By: Noel C Ducusin
Mergers and Acquisitions as a Growth Strategy
Mergers and acquisitions (M&A) are powerful tools for driving growth. They enable companies to expand their reach, add new capabilities, and strengthen their market position. A merger combines two separate businesses into one. An acquisition gives one company full control over another. Some mergers are horizontal (between competitors), vertical (within a supply chain), or conglomerate (across unrelated industries). But companies rarely jump straight into M&A. More often, they start with smaller, lower-risk partnerships that can grow over time.
The Spectrum of Corporate Combinations
There are different levels of partnership, each with its own level of commitment:
Merger – Two companies combine into a single entity.
Acquisition – One company buys and controls another.
Joint Venture (JV) – Two or more companies create a new entity, share equity, and split risks for a specific project.
Strategic Alliance – Companies collaborate without creating a new entity or sharing ownership. This is the most flexible and least formal arrangement.
Why Companies Choose Alliances and JVs to Grow and Scale
Alliances and JVs give companies practical ways to grow without the upfront risk of a full buy-in.
Some practical examples include the following:
Shared Risk – A fintech startup with a cryptocurrency prediction algorithm partners with a bank. The startup gains credibility and funding; the bank tests innovation without betting everything.
Access to New Markets – A global security camera maker partners with a local distributor to enter a new country quickly.
Combining Resources – A fitness tracker company links with a health app developer, creating a stronger combined product.
Speed to Market – A bank wanting to launch peer-to-peer payments works with an established payment processor instead of building its own system.
When Not to Use an Alliance or JV
Alliances and JVs aren’t always the right move. Avoid them when:
You need full control over operations, brand, or intellectual property.
Your partner’s culture or strategy clearly clashes with yours.
Regulatory or compliance hurdles are too heavy.
Speed is critical and coordination will cause delays.
You’d risk exposing core technology or trade secrets without protection.
In these cases, a direct acquisition or building in-house capabilities is the safer, faster option.
The Strategic Value of Partnerships
Strategic alliances and JVs give companies a practical middle ground between going solo and a full merger. They let businesses test ideas, share costs, and build market presence without jumping straight into an all-or-nothing deal. Managed well, they can serve as stepping stones to long-term growth.
About the Author
Atty. Noel C. Ducusin is the Director for M&A at DoingBusinessPH, where he works with offshore investors—primarily from Japan, Europe, the US, and Southeast Asia—seeking to enter the Philippine market through acquisitions, joint ventures, and strategic partnerships. He also advises local companies, family offices, and high-net-worth individuals on originating and executing transactions, including preparing businesses to be investment-ready through reverse due diligence.
His work spans the full M&A cycle: identifying counterparties, managing due diligence, leading negotiations, structuring transactions, arranging financing, and coordinating with trusted vendors such as banks, suppliers, and contractors. For startups and new ventures, he helps design fundraising-ready structures and connects them with investors, making DoingBusinessPH a natural bridge between global capital and local opportunity.
Beyond transactions, Noel and his team provide executive education and professional development through speaking events, seminars, and small-group sessions like business lunches and roundtables, then carry that value forward into practical, business-ready solutions. These include annual subscriptions for legal and regulatory updates, customized in-house corporate training, and post-event compliance audits, along with exclusive deep-dive masterclasses and peer mastermind groups for executives. They also prepare executive toolkits with ready-to-use templates and offer premium one-on-one consulting sessions—all designed to turn the insights gained from these settings into clear, actionable steps that help investors and businesses navigate the Philippine market with confidence.
A lawyer by training with a degree in Business Management, Noel is also Senior Partner at N. Ducusin & Partners Law Offices, which specializes in Mergers & Acquisitions, Investments, Cross-Border Regulatory, and Corporate Advisory. Over the years, he has developed deep, practical expertise in corporate finance, company valuation, and financial modeling through hands-on involvement as part of the deal team in live transactions. This combination of legal and financial experience allows him to bridge both perspectives seamlessly, ensuring that deals are not only executed but positioned for long-term success.
He is always looking forward to comparing notes with investors, startups, and vendors to explore where his clients’ mandates align with theirs and to uncover potential opportunities and collaborations that benefit both sides. Please feel free to connect with him to continue the conversation and explore where your goals and his clients’ interests may intersect.
His mission for this blog is to help foreign investors, business owners, and managers by breaking down complex legal concepts and dense technical material into simple, straightforward, and actionable insights for better business decisions. Articles and briefs are written in plain everyday language, without jargon or unnecessary academic writing—the simpler and more practical, the better.
“Everything should be made as simple as possible, but no simpler.” – Albert Einstein