Getting Around Your Non-compete
“Nick Leighton, owner of NettResults, sold his business with a very flexible non-compete clause. It was so flexible that he was able to operate his business exactly as it was two years after the sale. This podcast shares how he structured the non-compete clause and what he did to operate his business from another city,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business.
Nick Leighton started a marketing agency called NettResults with the idea of helping technology companies access consumers in the Middle East. Based in Dubai, Leighton built NettResults to around $2 million in revenue when he decided to sell.
Leighton attracted a number of offers including one from a much larger agency that wanted an office in the Middle East.
The acquirer had no interest in Leighton’s brand, so he carved the NettResults name and website URL out of the purchase, which turned out to be a prescient move. Two years later, Leighton’s acquirer decided to leave the Middle East. Leighton, having honored his two-year non-compete, was able to re-start his agency, under the same name, without breaching his agreement with the acquirer.
In this episode you’ll discover how to:
- negotiate a non-compete agreement that gives you more flexibility.
- position your company so it can thrive while you’re away.
- keep employees happy (the answer may not be equity).