Protecting Value In An Acquisition

Human capital, intellectual property and a secure customer base often drive the value of an acquisition. To secure that value, the buyer of a business may want to retain key employees and prevent the seller from competing with the business for a specified period. The acquisition agreement therefore often includes certain restraints. Buyers and sellers may later disagree on the interpretation and enforceability of these terms. Various immediate dispute resolution steps must be taken to protect the value of the acquired business. Our commercial litigation team regularly acts for clients involved in this type of dispute.

Typical restraints in an acquisition agreement apply for a specified period after the sale is complete and restrict a seller from competing with the business within a defined geographic area (a non-compete clause), from soliciting or dealing with existing customers or suppliers of the business (a non-solicitation or non-dealing clause), and from