In a purely bilateral ecosystem, the seller of one service could be the buyer of another service. An IT service provider could sell its IT management services to a telecommunications services provider and simultaneously buy managed telecommunications services.
Structure
Such reciprocal services could create new value for each party. New business is generated in a “win-win” scenario. Structuring such relationships requires each party to look at the reciprocal transactions as both a buyer and seller and to evaluate relevant scenarios in each role. Legal documentation will focus on the interdependency of the parties and the consequences to the relationship under scenario analysis.
Risk Mitigation
However, reciprocity of dealing is never equal. Each party incurs particular risks relating to the relationship, the flexibility to act in its best interests as a customer of the other’s services despite a self-interest as a provider to the other party, the other party’s financial condition and bankruptcy law.
