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Home Resources Glossary Non-Solicitation Agreement

M&A Glossary

Non-Solicitation Agreement

An agreement signed by employees and management whereby they agree not to solicit customers or other employees of the company regarding job opportunities, upon termination of their employment agreement.

See Also

Key employee, non-compete agreement.

Tips

A non-solicitation clause should be a component of all employment and contractor agreements. Many key managers hold up a sale and demand ransoms from the seller in the absence of any such restrictions. Many M&A advisors have had more than a fair share of transactions end due to managers who quit before closing and opened up a competitive business.

Related Resources

Alternatives to Non-Competes with Employees

Related M&A Terms

Net Income

Amount of money earned after deducting from the gross revenues of a business all expenses, including overhead, employee salaries and benefits, manufacturing costs, inventory costs, distribution costs, and marketing and...

Non-Binding

Having no legal or binding force. Tips Non-binding is normally used in the context of a non-binding letter of intent (LOI). Technically some clauses in the LOI are binding, such...

Non-Compete Agreement / Non-Competition Agreement

A contract that limits the seller or key employees from competing with the business after the closing. See Also Key employee, non-solicitation agreement Tips It’s important for the seller to...

Non-Disclosure Agreement (NDA) / Confidentiality Agreement (CA)

A legal contract between at least two parties that outlines confidential material, knowledge, or information that both parties want to share with each other for specific purposes but with restricted...

Non-Operating Assets

Property or goods owned by a company that are not necessary to the ongoing operations of the business enterprise. Tips A seller can often dispose of non-operating assets in the...

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