Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Non-Compete Clause That Cost a Seller 26 Million
In this episode of The Acquisition Talk, Lucas and Luna dissect a deal that went sour because of a non-compete clause written too broadly. A founder sold his logistics software company for $120 million, then found himself barred from the industry for seven years. The restrictive covenant cost him $26 million in lost earnout payments and a new venture. They explore how non-competes are often afterthoughts in negotiation, why sellers underappreciate the scope of restrictions, and how to negotiate covenants that protect the buyer without strangling the seller. Lucas shares a framework for…
The skinny
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