When two or more parties come together and agree on a working arrangement where a particular goal is determined and where all parties accept the risks and rewards that can come as a result of the arrangement this is a joint venture. For dentists, there are several scenarios where joint ventures may be appropriate. Shared space arrangements, co-ownership of a dental practice, joint marketing programs, working with complementary businesses, or securing licensing deals for novel products and services are some examples.
In a joint venture, each party remains a distinct entity but leverages each other’s strengths to meet a particular goal that may be difficult to impossible to do alone. As a result, when that collaboration leads to success, all parties have the benefit of enjoying those victories. Likewise, risks are also taken together and if there are failures and losses, everyone in the joint venture experiences these too.
For dentists in California, considering a joint venture may be a means to access new markets or patients, expand their services or offer specialty dental services, share costs of expensive facilities and equipment, and more.
In some instances, joint ventures make a lot of sense and they can work well where everyone involved can prosper. However, there are some very unique and distinct challenges and uncertainties that can come with a joint venture which is why this type of arrangement should not be gone into without careful consideration and due diligence. To protect your interests and assist you along the way, having an attorney’s assistance can be advantageous. In California, the Los Angeles dental business attorney at Leiva Law Firm can help.
Picking the Right Partner
It is fundamental to go into a joint venture with the right partner. Compatibility, trustworthiness, and resources are all critical. After all, when you tie yourself to another entity, you are investing your time, reputation, and money into the undertaking. Picking the right partner is vital to your personal and continued success as well as that of your combined goals.
As a result, there are many characteristics to look for when searching for and choosing a partner:
- A commitment to compliance and quality
- A track record of integrity
- Shared vision
- Having the same values in common
- Agreement on patient care and an aligned philosophy concerning how patients are treated
- Financial health and a strong credit rating
- Easy communications
- Personal chemistry
- Motivated and dedicated to the venture’s goals
- Strong leadership qualities
- Untarnished reputation in the community
- Complimentary strengths and aptitudes
This may seem like a long list of qualities and to get them all may be difficult. In reality, being on the same page and getting along is significant. You want to make sure that who you partner with will be someone who has all of the elements and skills necessary to enhance your own and add to the venture so that it is sound and best aligned to succeed.
Speak to an Attorney at Leiva Law Firm Today
Having a legal professional’s assistance from the start can help things move along more smoothly and also ensure that your time is well spent dealing with the most ideal match. Additionally, an attorney can safeguard your interests through a carefully structured partnership agreement.
For assistance with a joint venture, call Leiva Law Firm at (818) 519-4465 to schedule a free consultation.
