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... amortization of consideration given for a non-compete in a business sale context is different from the write-offs allowed for non-competes in a simple employment context. Restrictive covenants in an employment context can often be written off when paid, or over a much shorter number of years. Reciprocity Reciprocal non-competes binding the buyers can also be very important and are usually overlooked. Without one, consider what might happen if the seller repossesses the agency and the defaulting or bankrupt buyer still has much of the agency's confidential information in his head or copied in some format (after all, he or she has now been dealing with seller's key customers and vendors for a couple of years) .. and no non-compete! The original seller has the agency back, but if the defaulting buyer has an unrestricted right to compete, the agency ... of a series that covers buy/sell arrangements for agency valuation and tax issues, shareholder internal buy/sell agreements, related estate planning, employment contracts, and non-competes. It's part of a unique pre-publication book that gives you practical street-level understanding of one of the most significant financial events in the life of your agency. CHAPTER 4: COVENANTS NOT TO COMPETE IN THE SALE OF AN AGENCY Intellectual property protection is critical in the sale of an agency. For an agency, this property is the agency's book of business. No buyer is going to buy an agency whose owner and employees are free to take all of the agency's confidential information, leave immediately, and use the money the buyer just paid them to set up shop across the street and compete. As discussed in the previous chapter ...

... SALE OF AN AGENCY Intellectual property protection is critical in the sale of an agency. For an agency, this property is the agency’s book of busine...ge regarding criminal forfeiture of property, such as RICO (commonly referred ...