Selling Your Business? Start With The Non-Compete?
Sometimes it’s a good idea to start where things end
If you are a business owner you might dream of someday selling your business.
For many of us owning and running a business is hard work.
And at some point you want a break.
Depending on your age or other factors you might want to get back into the business game. And that’s what today’s article is about.
Almost any buyer or a business for sale is going to want a non-compete.
And it’s often an after-thought. Negotiate the sales price then talk about the non-compete.
But for those that aren’t ready to retire or give up being a business owner in some capacity it’s smart to think about a non-compete earlier.
As those early offers are coming in for your business don’t just look at the purchase price as the key term. Maybe the non-compete matters too.
In general non-competes have to be reasonable in time, scope and geography.
But some might attempt to block you out of an entire industry. Others will be more permissive.
So it’s good to think about where your life might be headed after your business sale and what you might want to do next.
And if you’ve got some more time in the business world ahead of you it might be a great idea to think about the non-compete as you consider the offers coming in on your business.
A good lawyer can help you think through this process.
Shawn
NOTE: While legal issues are discussed this is education and is not legal advice. It is not a substitute for the advice of an attorney. Please consult your own attorney on your situation and get legal advice about your circumstances. Courts are unpredictable may disagree with the author’s opinions.
This is not financial or investment advice.
P.S. You may get new updates on business issues by following on substack: