Contractor non-competes

by a searcher from Carnegie Mellon University - Tepper School of Business

4 years ago

I am putting in an offer on a construction contractor in a US metropolitan area and am wondering how long a typical non-compete clause is for this type of company. I'd appreciate hearing about anyone's experience.

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5 comments

intermediary from Wake Forest University - Schools of Business

Agree with the above. We typically see sellers providing 3 to 5 year non-competes. Note, a seller's non-compete is very different than an employee's non-compete, which are typically limited to one to two years and restricted in other ways.

4 years ago | like reply | 1 like

searcher

I negotiated a 5 year non-compete for my company. A colleague of mine purchased a contracting company and negotiated a 4 year non-compete. I wouldn’t settle for anything less. Owners rarely, if ever, have a valid reason for a short non-compete.

4 years ago | like reply | 0 likes

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