Seller Non-Compete

by a searcher from Harvard University - Harvard Business School

1 year ago

How do you determine market rate for a seller non-compete? 

Does anyone have any helpful heuristics here?

Is a non-compete compensation to the seller based on valuation for the business? Prior-to-sale seller income? Some fraction of market rate salary for a manger (if owner was acting as operator)?

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8 comments

searcher from Rhodes College

I would be wary of state specific regulations. There might be different ways to structure things to successfully enforce a noncompete.

11 months ago | like reply | 0 likes

professional from University of Denver

Definitely included in the purchase price, but a portion of the purchase price may be allocated to the non-compete agreement.

1 year ago | like reply | 0 likes

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