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M&A Buyer Blocks Seller’s Bankruptcy Discharge Over $225K Non-Compete Violation

In this engaging M&A blog post, we dive into a compelling legal case where a buyer successfully blocked a seller’s bankruptcy discharge over a $225,000 non-compete violation. Through this case study, we highlight the crucial importance of adhering to non-competition

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A BADLY DRAFTED EMPLOYMENT AGREEMENT WITH SELLER’S OWNER ENDS UP IN COSTLY LITIGATION BETWEEN THE BUYER OF SELLER’S BUSINESS AND SELLER’S OWNER

The buyer hires the seller’s owner to be its vice president of sales, under a 5-year employment agreement, with the buyer’s right to terminate for cause. The agreement also gave the buyer the right to fire the seller’s owner at

Posted in Problem with seller owner's competition, problems with seller's employees Tagged with: , , , , , , , , ,

COURT FINDS NONCOMPETE COVENANT GIVEN BY SELLER TO BUYER LIKELY UNENFORCEABLE DUE TO EMPLOYMENT CONNECTION

Court said that Arkansas applies stricter scrutiny to noncompete agreements in employment contracts than those connected with a sale of a business. M&A Stories June 1, 2022 Introduction: In a recent court case, a noncompetition covenant given by a seller

Posted in Problem with seller owner's competition Tagged with: , , , , , , , , ,

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