How to keep a seller invested in a company?
Hello all. We're considering acquiring a company where the seller isn't retiring, which could pose a future threat if they ever choose to compete with us after the non-compete expires.
How feasible is it to demand a long non-compete? (~10 years or more)
How large of a seller note should we consider asking to keep them invested?
How much equity should we consider asking them to invest in the acquisition to keep them invested?
Is there something else we can do to try and mitigate this risk?
I'd appreciate any thoughts on this. Thanks!