Portfolio ⟩ How to Participate in the Portfolio
Aiving Types of Business Partnerships
Business Alliances by Mutual Agreement
Aiving and the affiliated company agree to establish a collaborative relationship based on cooperation. The partnership will be structured in a manner that minimizes legal complexities while maximizing the benefits for both parties involved.
PARTNERSHIP TYPES
Joint Ventures
- Definition: Establish a new entity through joint investment with Aiving or collaborate on specific projects together.
- Advantages: Offers benefits such as risk diversification, sharing of knowledge and resources, and easier access to foreign markets.
- Case: Examples include technology development, entering foreign markets, and large-scale government projects in Singapore.
Strategic Alliances
- Definition: Collaboration on specific business areas or projects through resource sharing, based on an explicit contract that is valid for a specified period.
- Advantages: Allows both companies to leverage their core competencies, pursuing mutually complementary benefits.
- Case: Examples include technology cooperation, joint marketing, and product development.
Licensing Agreements
- Definition: A method of granting or obtaining the rights to use specific technologies, trademarks, patents, etc., with Aiving.
- Advantages: Through technological collaboration, inclusion in Aiving’s R&D research center portfolio is possible, allowing for market testing of technologies in a global R&D environment.
- Case: Participation in Aiving’s technology portfolio, opportunities for global R&D projects, and avenues for technology commercialization.
Consulting Alliance
- Definition: Aiving provides acceleration services to affiliated companies, and in return, these companies assist in Aiving’s global business initiatives.
- Advantages: Access to Aiving’s global network and resources in Singapore and the ASEAN region.
- Case: Venture studio, accelerator, incubator.
Joint Venture Agreement
A Joint Venture Agreement is a contract entered into by two or more companies to pool their resources and collaborate on the establishment of a new business entity or to jointly pursue a specific project for a defined business purpose. The objective is to combine each party’s strengths to achieve mutual benefits. The global local joint venture of Aiving falls under this category.
PARTNERSHIP TYPES
Equity JV
- Definition
This approach involves establishing a new legal entity and contributing capital for its operation. Each participant holds an equity stake, and profits and losses are distributed according to the shareholding ratio..
Contractual JV
- Definition
This approach involves collaboration through a contractual agreement without establishing a separate legal entity. The contract specifies the scope and terms of cooperation, and the parties jointly execute the project.
Strategic Alliance
- Definition
This is a collaboration aimed at achieving strategic objectives by combining different resources. There is no capital contribution, and each party leverages its expertise and resources.
Joint Project
- Definition
This approach involves temporary collaboration for a specific project. The joint venture relationship terminates upon the completion of the project.
Technology licensing agreements
Technology licenses are shared and used by Aiving and the family companies, allowing the family companies to license critical technologies or IP based on a project-specific list of agreed-upon technologies. License agreements vary in scope depending on the agreement, such as per project, per term, etc. In exchange for royalty payments, access to R&D projects, and access to global markets for the technology.
PARTNERSHIP TYPES
Exclusive License
Definition: Licensee has the exclusive right to use the technology.
Non-Exclusive License
Definition: While the technology can be used by the licensee, the licensor can license the same technology to other companies.
Sole License
- Definition
In addition to Licensee, Licensor can use the technology, but no other entity can use it.
R&D License
Definition
A license that allows you to use the technology for research or development purposes. But, it may not include commercial exploitation rights.
Location License
Definition
An agreement that grants licensee the right to use technology only in a specific region or country.
Strategic Alliance and Partnership Agreements
The purpose is to enhance mutual benefits through the sharing of technology and resources between companies. Strategic alliances allow companies with limited funding or sales capacity to leverage the technology or intellectual property of partner companies, through licensing agreements, joint marketing, joint development contracts, and other similar arrangements. Such alliances enable Aiving and its affiliated companies to capitalize on each other’s strengths without the need for capital investment.
PARTNERSHIP TYPES
Technology and R&D Alliance
Definition
Collaboration on new product development through technology sharing and joint research and development projects.
Marketing and Distribution Alliance
- Definition
Increase in sales of goods and services by utilizing each other’s markets and distribution channels.
Supply Chain and Operations Alliance
- Definition
Cooperation in operations such as raw material supply, production, and logistics.
Financial Alliance
- Definition
Financial collaboration involving joint investments, capital raising, and risk-sharing.
Patent purchase and technology acquisition agreements
Purchase of the target company’s patents and technology: Aiving and its affiliated companies can engage in transactions involving both tangible and intangible assets, including intellectual property rights such as patents, trademarks, and copyrights. The acquiring company can utilize these assets to develop new products or services, or to enhance existing ones. This may occur in collaboration projects at the Singapore Global R&D Hub, potentially involving other global companies.
PARTNERSHIP TYPES
Patent Purchase Agreement
- Definition
This involves the complete acquisition of patent rights for a specific technology or invention, allowing the purchaser to exercise exclusive rights and prevent competitors from using the technology.
Technology Acquisition Agreement
- Definition
This refers to the acquisition of rights, know-how, or related assets for a specific technology, enabling the purchaser to utilize or further develop the technology. This is also known as a technology transfer agreement.
This agreement may arise in connection with global R&D projects or through the exposure of Aiving’s brand business, involving the technologies of affiliated companies.
Mergers and AcquisitionsM&A
Mergers and Acquisitions (M&A) encompass the concepts of acquisition and merger between companies. M&A activities are pursued with objectives such as corporate growth, market dominance, and technology acquisition, and can take various forms. The family companies collaborating with Aiving may achieve market leadership in the ASEAN and other APAC markets through technological advancement. As global companies enter these markets, an M&A-driven exit may occur to facilitate market consolidation and infrastructure absorption. Singapore, as a gateway to the rapidly growing ASEAN market, is attracting significant attention from global investors and corporations.
Horizontal M&A
수평적 인수합병
- Definition
A merger or acquisition between two companies that are competitors within the same industry. - Purpose
To expand market share and achieve economies of scale.
Vertical M&A
- Definition
A merger or acquisition between companies at different stages within the same supply chain. - Purpose
To control the supply chain, reduce costs, and increase production efficiency.
Conglomerate M&A
- Definition
A merger or acquisition between companies that operate in different industries. - Purpose
To diversify business operations, spread risk, and enter new markets.
Reverse Merger
- Definition
A merger or acquisition where a private company acquires a publicly listed company to attain public status. - Purpose
To reduce the costs of going public, simplify the listing process, and achieve a backdoor listing.