As I understand this new rule, it does not apply to M&A

As I understand this new rule, it does not apply to M&A
by Dutch (2024-04-24 12:50:20)

In reply to: Yes and no posted by catripledomer

As a result, I believe noncompetes in M&A transactions will continue to be enforceable. I also understand that the new rule does not prohibit nonsolicitation provisions (a common restrictive covenant preventing a person from soliciting customers or employees of his or her former employer).

I also agree with you that if noncompetes become unenforceable in M&A, then the value of a seller's business will be diminished. This is especially true in a service business like medical or dental. Seems like a double edged sword for the doctors.

It should be obvious, but none of this is legal advice.

Replies:

Hopefully M&A is excluded - catripledomer 2024-04-24 17:32:58