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Doesn't this diminish the value of a startup, say, if the buyer hands the principals a mountain of cash in a buyout then the principals use that cash to build i
by CodeWriter23 4y ago
Doesn't this diminish the value of a startup, say, if the buyer hands the principals a mountain of cash in a buyout then the principals use that cash to build in the same industry / market the startup they would have if they had all that cash in the first place? Without having the non-compete with the principals, who would even want to buy your startup?
- TheCoelacanth 4y agoI doubt the rule would apply in that case because that isn't a labor contract, it's a contract to sell a business.
- OkayPhysicist 4y agoI don't know if you've noticed, but there's this little state "California" that gets a lot of press in the start-up scene. Non-competes are basically illegal there, and it doesn't seem to have hampered either the start-ups, nor the build up of megacorporations who buy them.