Non compete question

searcher profile

March 16, 2025

by a searcher in Illinois, USA

Exploring an acquisition in which the business is held in a trust. There are multiple beneficiaries in the trust, including one currently working in the business, and perhaps another who had previously worked in the business. Would it be fair to expect all trust beneficiaries to sign a non-compete agreement?

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Reply by a searcher
from The University of Chicago in Nashville, TN, USA
I second what ^redacted‌ wrote above. Not having all parties sign the NC could come back to haunt you in future years. Happy to chat about some of the things I've heard/seen.
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Yes. I would require anyone with business ownership to sign a non-compete. If you are getting financing it is likely your lenders will want them to sign non-competes as well.
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