SALES AGREEMENTS/NON-COMPETES – ACQUISITIONS

By Tom Cobery
In September 17, 2013

At the recent NAPL Mergers & Acquisitions Workshop in Chicago one of the topics discussed was the need to have key sales personnel on board prior to the deal being consummated. If the Acquisition is structured as an Asset Purchase, none of the Acquired Company’s contracts will be transferred to the Acquiring Company.

One of the attendees commented that he did not get Non-Competes from the existing key salespeople prior to closing. The day after the closing a key sales individual resigned and this resulted in a loss of almost 50% of the Acquired Company’s revenues. As you can see, it is critical to have this resolved prior to the closing, no one wants surprises like this, especially one day after closing. If the salesperson refuses to sign a Non-Compete Agreement you can at least assess your risk and make the appropriate adjustments.

If you would like to discuss this further please give me a call at 201-523-6326 or E-mail at tcobery@napl.org.

Tom Cobery

Dealing with the day-to-day needs of running a busy printing operation often leaves company leaders little time to plan for the future of their enterprises on their own. Tom works with chief executive officers and senior management executives in the Tag and Label Industry to develop growth opportunities through strategic transactions, new markets, or new service opportunities. Available for consulting on individual projects, he can also be engaged to serve as an Advisory Partner, helping executives guide their company into the future, serving as an impartial sounding board for ideas, and working with them to set the right course for continued growth and greater profitability. Tom’s personal experience as a Tag and Label Industry company president and chief executive officer, plus his extensive networking with other industry executives through his volunteer leadership activities with the Tag and Label Manufacturers Institute (TLMI) give him a unique perspective on the tough issues today’s company leaders face in this specialized segment. Companies engaging Tom will find his insight and independent advice an invaluable asset in helping them achieve their growth and profitability goals. More than a consultant, Tom Cobery wants to be your trusted Advisory Partner.

Leave A Comment