What is Non-Poach Agreement?
The Short Answer
Non-Poach Agreement explained simply
A Non-Poach Agreement is a legal contract. It prevents the buyer of your business from hiring your employees for a set period after the sale. This agreement protects your team members from being recruited away by the new owner. It also protects the value of the business you sold by keeping key talent in place. This helps ensure a smooth transition and stability for your former employees and the business.
Real-World Example
The Software Company Sale
Imagine you sell your software company. You have a team of skilled developers. A Non-Poach Agreement would prevent the new owner from hiring those developers away from the company for, say, two years. This ensures your team stays with the business, maintaining its operational strength and value.
Why this matters
This agreement matters because it protects your employees and the value of your business. It gives your team stability during a sale. It also ensures the buyer can’t just take your talent without buying the whole business. This helps you get the best price for your company.
Always include a Non-Poach Agreement when selling your business. It protects your employees and the business you worked hard to build. It also shows you care about your team.
Always include a Non-Poach Agreement when selling your business. It protects your employees and the business you worked hard to build. It also shows you care about your team.
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