Noncompetes In An Asset Purchase Agreement Can Be Enforceable Even If Some Of Seller’s Earn-Out Was Not Paid

In InsureOne Indep. Ins. Agency, LLC v. Hallberg, 2012 IL App (1st) 92385, http://www.state.il.us/court/Opinions/AppellateCourt/2012/1stDistrict/1092385.pdf  (Ill. App., 2012), the court held that a failure to pay approximately 2% of an earn-out, which was 1% or less of the agreed purchase price, was not enough to cancel a seller and his son’s noncompete obligations under the asset…

Business Broker Deregulation Passes House

HR 2274 passed US House 422-0 on January 14, 2014. It Exempts merger and acquisition brokers from SEC “Broker-Dealer” registration requirements. Companion Senate legislation, S. 1923, is pending in the Senate. Current law requires business brokers to limit participation in negotiation of any terms of sale if owner earn-outs, stock purchases instead of asset purchases, or any…