Non-solicitation

Definition

A contract clause barring the seller from luring away the business's employees or customers for a set period after the sale, narrower than a full non-compete.

Why It Matters

Where a non-compete stops the seller from opening a rival, a non-solicitation protects the two assets a buyer most depends on keeping: the staff who run the business and the customers who pay it. A weak or short clause lets a departing owner quietly rebuild their old book, so its scope and length deserve as much attention as the price.