You may be an expert in your own business, but few successful business people are well-versed enough in business law Dallas TX to handle all of the varied legal issues that affect every aspect of business, from forming a company to selling it, not to mention all the other legal circumstances that come up in between. For example, when you have built a business so successful that larger companies come knocking on your door to buy, you will want to consult an attorney who specializes in business law to ensure the sales contract represents your best interests.
Business Law Dallas TX: Selling Your Business and the Non-Compete Agreement
A non-compete agreement is a common element in the sale of any business. It may be part of the sales agreement, or it might be written up as an entirely separate document. The non-compete is put in place to give the business’s new owners a chance to enjoy the same level of success you did without having to compete with you. By signing it, you agree not to turn around and open a similar business as soon as the sale is final. No non-compete should ban you for life from launching a business that you already know you can make successful but, by design, it should give the new owners a fighting chance to establish their version of the old business. The length of the time constraint in non-compete clauses and contracts vary case-by-case. They can be as short as a year or two, or much longer. For example, in an article on his secret to success, Bob Diener revealed that when he sold hotels.com, the agreement included a 5-year non-compete, which is how long he waited before launching getaroom.com.
While Diener’s non-compete was essentially global because of the nature of online businesses, not all no-compete agreements are structured that way. In most cases, the geographic area in which you are prohibited from doing business is a negotiable issue, especially if your business is not web-based. Also, the activities which you are barred from participating in can be negotiable, too. For example, you might not be allowed to open another, similar business for 4 years, but you can have a section included in the non-compete that allows you to consult or offer other services related to the business.
Contact Simon|Paschal for Expert Help
Whether you are selling a business, opening one, or are involved in negotiating and drafting service contracts, the lawyers at Simon | Paschal have the experience in business law Dallas TX that you need. Not only are they passionate about the law, but they understand how passionate you are about your business. Simon|Paschal can create business documents from scratch; they will also be happy to review contracts and agreements on your behalf to ensure that your interests are fairly represented. You can trust Simon|Paschal when it comes to the legal end of doing business. Call 972-893-9340 today.
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