Non-Compete and Non-Solicitation Clauses in a Business Sale: Topics to Review Before You Sign
Non-compete and non-solicitation clauses restrict a seller's next move. Here are the topics worth reviewing with your advisors before you agree to one.
Read practical guides for business sales, real estate exits, equity liquidity, windfalls, and other moments where the right advisor questions matter.
Non-compete and non-solicitation clauses restrict a seller's next move. Here are the topics worth reviewing with your advisors before you agree to one.
An earnout ties part of your sale price to results you don't fully control after closing. Here are the topics worth reviewing with your advisors first.
The restrictive-covenant section of a purchase agreement can quietly determine what you can do professionally for years after closing. Here is what to raise with your advisors.
Rollover equity looks like a small line item on a term sheet. It changes what your exit actually looks like. Topics to review with your advisors before signing.
Management retention agreements look simple on the surface. The tax, legal, and financial layers underneath often need three different advisors to untangle.
Reps and warranties insurance changes how seller indemnification works. Here are the topics to bring to your advisors when the term sheet mentions it.
A letter of intent looks preliminary and is anything but. The terms it sets anchor the final deal in ways that are hard to unwind later.
Business owners exploring a sale encounter an early decision about transaction structure. This overview reviews the key tax, liability, and operational topics to discuss with your advisors when considering an asset sale versus a stock sale.
Earnouts allow buyers and sellers to bridge valuation gaps, but they transfer risk to the seller in ways that are not always obvious at signing. Here is what to review with advisors first.