Non-competes are central to the success of small business acquisitions.

So you’ve bought a small business. You worked with the seller to successfully transition it to your stewardship. Things are going well. Customer retention is strong. Sales are buoyant.
But later that year, a new competitor opens. Customers quickly jump ship. Sales decline. You’re left in trouble. Worse, the new competitor is helmed by none other than the seller.
This is not fiction. This exact scenario has played out before; it will play out again. Non-competes are the prophylactics that prevent this situation.
Why are non-competes so important? • They restrict the business activities that the seller can pursue post close. • They demarcate the geographic area in which those restrictions apply. • They specify the time during which those restrictions apply.
Why not just ban the seller from doing anything, everywhere, all at once?
Because non-competes have to be... reasonable.
Want to learn more?

Read my most recent blog post on SMB-Transactions (smb-transactions.com/articles/noncompetes).
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