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Broken Chains and Reduced Valuations: How the FTC’s Non-Compete Ban May Impact M&A

May 21, 2024 (2 min read)

Unless you’ve been practicing under a rock, you’ve probably heard that the Federal Trade Commission (FTC) recently issued a final rule banning most employee non-compete clauses. You may even have heard that there’s an exemption for non-competes with sellers of a business. But did you know that even compensation clawbacks could be deemed to be a “non-compete clause” under the FTC’s final rule, or that the business sale exemption may only extend to sellers and not to target management or key employees? Learn more about these questions and what the FTC’s rule means for M&A practice in this new article from Practical Guidance.

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