ILMA Compoundings March 2018 - 21

Because it's a contract, contract-law principles - state-level
laws - would then be used to resolve any disputes."
Entity joint ventures go beyond simply agreeing to join
capabilities. "The parties will actually create a new legal entity," Leiter said. "The idea is that the new legal entity is going
to operate separately - or is at least capable of operating
independently - of its owners. The entity can sue, and can
be sued, in its own name, which is an important distinction
to recognize."
Rather than two companies joining forces, an entity joint
venture creates just that: a new business entity that can operate on its own, either for a specific project or an ongoing
business goal.
"The different participants in an entity joint venture will
hold their investments in the entity, and they have ownership
interests," Leiter continued. "The owners of the joint venture
will come up with various corporate agreements to determine
profits attributable to each party, various governance issues ...

[and] importantly, liquidation rights. At different times over,
let's say, the next 10 years, one side or the other can come in
and offer to buy everybody out. There are various provisions
like that, called liquidation options, that might be there."

It sounds like a JV, looks like a JV
and acts like a JV, but is it a JV?
It is important to note that a joint venture does not accomplish the same thing as a partnership agreement, a limited
liability company (LLC), a consortium, a merger or any
other sort of multiple-business arrangement.
"The distinction in the common lexicon can be tenuous," admitted Mandy Patterson, vice president of Owner
Resource Group in Austin, Texas. "I would view a joint
venture as a new entity with attendant revenues and expenses, governed by a partnership agreement, formed by two
or more companies for a specific endeavor. A consortium

21



Table of Contents for the Digital Edition of ILMA Compoundings March 2018

LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
IS A JOINT VENTURE THE ANSWER?
WHERE’S YOUR INVENTORY?
SPEAKING YOUR LANGUAGE
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings March 2018 - Cover1
ILMA Compoundings March 2018 - Cover2
ILMA Compoundings March 2018 - 1
ILMA Compoundings March 2018 - 2
ILMA Compoundings March 2018 - LETTER FROM THE CEO
ILMA Compoundings March 2018 - INSIDE ILMA
ILMA Compoundings March 2018 - 5
ILMA Compoundings March 2018 - 6
ILMA Compoundings March 2018 - 7
ILMA Compoundings March 2018 - 8
ILMA Compoundings March 2018 - 9
ILMA Compoundings March 2018 - WHAT’S COMING UP
ILMA Compoundings March 2018 - 11
ILMA Compoundings March 2018 - INDUSTRY RUNDOWN
ILMA Compoundings March 2018 - In the Know
ILMA Compoundings March 2018 - International Insight
ILMA Compoundings March 2018 - 15
ILMA Compoundings March 2018 - 16
ILMA Compoundings March 2018 - 17
ILMA Compoundings March 2018 - Market Report
ILMA Compoundings March 2018 - 19
ILMA Compoundings March 2018 - IS A JOINT VENTURE THE ANSWER?
ILMA Compoundings March 2018 - 21
ILMA Compoundings March 2018 - 22
ILMA Compoundings March 2018 - 23
ILMA Compoundings March 2018 - WHERE’S YOUR INVENTORY?
ILMA Compoundings March 2018 - 25
ILMA Compoundings March 2018 - 26
ILMA Compoundings March 2018 - 27
ILMA Compoundings March 2018 - 28
ILMA Compoundings March 2018 - 29
ILMA Compoundings March 2018 - SPEAKING YOUR LANGUAGE
ILMA Compoundings March 2018 - 31
ILMA Compoundings March 2018 - 32
ILMA Compoundings March 2018 - 33
ILMA Compoundings March 2018 - BUSINESS HUB
ILMA Compoundings March 2018 - 35
ILMA Compoundings March 2018 - COUNSEL COMPOUND
ILMA Compoundings March 2018 - 37
ILMA Compoundings March 2018 - 38
ILMA Compoundings March 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings March 2018 - Member Connections
ILMA Compoundings March 2018 - 41
ILMA Compoundings March 2018 - Cross Connections
ILMA Compoundings March 2018 - 43
ILMA Compoundings March 2018 - PORTRAIT
ILMA Compoundings March 2018 - Cover3
ILMA Compoundings March 2018 - Cover4
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