
Noncompetes When Buying a Business: Overreaching Hurts Buyers More than Sellers
By Dustin Rickett Nearly any deal regarding the sale of a business includes covenants prohibiting sellers from competing with the business they just sold. Most buyers (understandably) are nervous that a seller may decide to open up a new shop in the same industry – thereby materially devaluing the purchased company. This often leads to buyers looking for noncompete restrictions with the broadest scope possible. Be wary, however, because if