# Non-compete (seller)

The seller's promise not to start or join a rival, for a set time.

The business's durability assumes the seller does not start a new company down the road and take the customers back, which is why lenders expect one and why its terms deserve a lawyer's eyes rather than a template's. Enforceability varies by state and an overreaching clause can be struck down entirely, so a narrow one that holds is worth more than a sweeping one that does not. Check who signs it as well: a non-compete binding the selling entity but not the individual behind it protects nothing.

In numbers: A seller's non-compete might run 5 years within 50 miles, and the [purchase price allocation](https://searchspheresource.com/glossary/purchase-price-allocation) assigns it a value, say $165,000 of a $4,000,000 deal. A buyer who skips it learns why if the seller opens across the street eighteen months later with the customer list in memory.

Source: https://searchspheresource.com/glossary/non-compete
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt