A big part of what many buyers bargain for when they purchase a business is the loyal customer base.  As such, buyers should seek to prevent sellers from taking customers with them after the transaction closes.  A non-compete agreement prevents sellers from opening a business in direct competition with the buyer.  Because these agreements must be narrowly tailored to withstand scrutiny from the courts, however, only competent legal counsel should draft them.  Another useful tool for buyers is a non-solicitation agreement, which prohibits sellers from attempting to recruit employees and/or customers to join them in a new business venture.

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