Concept and Perspective - CNP

Have you ever been required by your employer to sign a non-compete agreement or a 'business protection agreement'. Well, they are about to become a thing of the past and that's good news for workers, entrepreneurs and consumers.

A non-compete agreement is a contract whereby a person agrees not to work for a competing business or start a similar business for a certain period after leaving their current job.

Non-competes erode one of the great strengths of the US free market: the free movement of labor. They lock people into jobs, blunt competition, a price paid by the consumer. They also stifle entrepreneurship.

So what's happened this week...

The Federal Trade Commission published a rule prohibiting the enforcement of non-competes. When the final rule comes into effect (later this year):

❎ Employers will be prohibited from trying to put in place NEW non-competes with employees at any level of the business

❎ All existing non-competes with employees (other than senior employees) will no longer be enforceable

✅ Existing non-competes with senior employees (who represent less than 0.75% of workers) can, however, remain in force.

✅ The enforceability non-competes will be preserved in business acquisitions. The FTC's rule does not apply to non-competition agreements made by an individual during the legitimate sale of their ownership stake in a business entity or the sale of most or all of a business's operating assets.

Businesses have (and will retain) other ways to protect legitimate business interests including non-disclosure agreements and protection under trade secrets laws. And, of course, more enlightened employers will protect their commercial interests by incentivizing employees to stay!

Have questions about non-competes in M&A transactions? Reach out today, we know M&A!

FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition The Federal Trade Commission

One of the most rewarding aspects of CNP’s work is seeing a business idea evolve from concept to fruition. Over recent months, we’ve been supporting Erin York in her journey to launch a consulting business, Parentmind. Parentmind's mission is to provide advice and support to parents of kids with learning or behavioral challenges, allowing those moms and dads to better understand and navigate the public education system.

Parentmind is now open for business. 🚀 Erin, we would wish you good luck, but we know that your passions and drive will ensure that you make your own luck 😊!!

Parentmind Introducing Parentmind, where parents of children with learning and behavioral challenges gain clarity and confidence. A Katy/Houston-based consulting firm that provides parents of children with learning and behavioral challenges specialized guidance to inform strategic decision-making and managemen...

'Post-merger integration,' often just called 'integration,' is the process of combining an acquired business into the acquirer's existing business. Integration is often neglected, something that can have a dire impact on the success of a deal, leading to the loss of employees and customers.

Want to know more about what integration is and what are some of the key factors to the success of bringing two businesses together? We have just the article for you! :-)

https://conceptandperspective.com/2024/01/30/post-merger-integration-what-is-it-and-why-should-you-care/

Post-Merger Integration: What is it and Why Should You Care? The objective of M&A is to increase the value of a business. That value can be measured in terms of increased cash flow or a reduced risk profile. When the business press covers a splashy deal,…