Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Non-Solicitation Agreement

Definition

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