to 40% in 2010, which shows the fast changing necessity to align in partnerships. The number of equity-based alliances has dramatically increased in the last couple of years, whereas the number of acquisitions has decreased by 65% since the year 2000. For a statistically examination over 3000 announced alliances in the USA have been reviewed in the years 1997 to 1997 and results showed that only 25% of these alliances were equity based. In the years 2000 to 2002 this percentage increased up to 62% equity-based alliances among 2500 newly formed alliances. Life cycle of a strategic alliance Analysis and selection In the analysis phase performance goals for the partnership are defined. These goals are used to determine the broad operational capabilities that will be required. In the selection phase those performance goals are used as some of the criteria to evaluate and select potential alliance partners. In addition, partner selection criteria can be categorised as being either task-related, or partner-related. Task-related selection criteria are associated with the operational skills and resources required for the competitive success of a venture. Partner-related criteria are associated with the efficiency and effectiveness of partner cooperation. The activities most often associated with the analysis phase are: Outline tentative performance goals Establish preliminary requirements and measures Gather internal and external benchmarking data Develop summary of performance objectives The activities most often associated with the selection phase are: Develop the ideal partner profile Create initial list of potential partners Establish and Communicate the selection process Check references Conduct interviews Conduct due diligence Make the selection Formation Forming a strategic alliance is a process which usually implies some major steps that are mentioned below: Strategy development: In this stage the possibility of a strategic alliance is examined with respect to objectives, major issues, resource strategies for production, technology and people. The objectives of the company and of the alliance must be compatible. Partner assessment: In this phase potential partners for the strategic alliance are analyzed, in order to find an appropriate company to cooperate with. A company must know the weaknesses and strengths and the motivation for joining an alliance of another company. Besides that appropriate criteria for the partner selection are defined and strategies are developed how to accommodate the partner's management style. Contract negotiations: After having selected the right partner for a strategic alliance the contract negotiations start. At first all parties involved discuss if