M&A Clips Video #10 –Non-Compete and Non-Solicitation Covenants

In this week’s video,  M&A attorney Shannon Zollo explains the importance of non-competition and non-solicitation covenants when buying a business.

Non-competition and non-solicitation covenants are typical within the context of an M&A transaction. So, when we’re speaking about non-competition and non-solicitation, what do we mean? Any buyer in a sophisticated M&A transaction is going to want to purchase a company, and prevent the sellers of the company from turning around after the deal closes and going out onto the marketplace and competing against the buyer.

When structuring a deal as a buyer — and when seeking to enforce these types of covenants — it is important to make sure that you pay adequate consideration for what you’re seeking.

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