Key Questions to Ask
WHY IS THE BUSINESS BEING SOLD?
Worst nightmare is to find that the previous
owner has set up a similar business a block away
and is drawing back all of the customers.
One way to prevent this from happening
is to have an attorney write into the contract
an agreement that the previous owner will refrain
from conducting the same business
within a reasonable distance for a period of at least five years.
Know as a legal restraint of trade—covenant
not to compete or “non-compete agreement”