Four things to know about joint ventures:
1. For joint ventures that include equity partnership, ownership should be set at fair market value, and profit distributions should be on par with equity ownership percentage.
2. Management, bills and collections and employee lease arrangements should be documented in an agreement, with stated compensation being equal to fair market value.
3. Services in the agreement should be rendered by the contracted party.
4. The joint venture agreement should be commercially reasonable even without the value or volume of referrals.
More articles on transactions and valuation:
U of Illinois Chicago to open surgery center after philanthropist donates $10M — 4 insights
Colorado surgery center in former retail space to open in mid-2020
Real estate firm pays $56.1M for Missouri medical office building, orthopedic practice — 3 insights
