Question for the community on Non-competes.
Here's the scenario:
• There are 4 owners (equity holders in the biz). • Only one of them works in the biz, and is the CEO / head "chef", so to speak. • One of them is the father of the CEO (well past retirement age), and the other 2 are investors - they are not "chefs". • I would be paying a premium multiple (2x Sales, I know, I know, don't get me started) for the business. • I want the CEO to signa non-compete.
1. But - do you have the other 3 owners sign a non-compete? 2. Would you compensate each to not compete in this scenario, given the premium multiple?