Due Diligence & Legal
Key-Man Non-Solicitation Covenant
A restriction preventing the seller from soliciting or hiring away the target's key employees or customers for a defined period after closing.
Seller Example
Promoter of a Pune engineering design firm negotiates the non-solicitation period down from the buyer's proposed 5 years to 3 years and narrows its scope to named individuals and top clients only, rather than an open-ended "any employee or customer" restriction, preserving the promoter's ability to freely build an unrelated business post-exit.