Aug 12, 2015
Key employees are a threat to become competitors. Having employees sign non-compete and confidentiality agreements before they find out the business is being sold keeps an owner in control and will comfort a buyer’s anxiety. Confidentiality agreements also protect important information that one wouldn't want in a competitor's hand to be used against you or your successor. Adding a non-solicitation provision that former employees won't solicit your existing employees or your clients would be wise. Make all the agreements assignable to successors of the company.