What are some best practices Purchase Agreement Non-Compete Clauses

searcher profile

October 01, 2023

by a searcher from Kansas State University in Kennett Square, PA 19348, USA

I am in the midst of an Acquisition (Asset Purchase) of a Technology company. I am using SBA 7a financing (10 year loan). What are some best practices to determine the duration and terms of the Non-Compete?

0
1
66
Replies
1
commentor profile
Reply by a professional
from University of Minnesota in Minneapolis, MN, USA
Generally speaking, I don't think this should be a big sticking point on most deals. I think market terms are about 5 years, and your lawyer should be able to get you language that balances specificity and broad protection for you. If Seller pushes back, it's time to start asking questions about why.
Join the discussion