Non-compete and non-disclosure agreements are so prevelant and important in the small business world that it is nearly impossible to operate a business without running into them. There is no doubt about it; non-compete agreements are difficult to enforce in Colorado. This is an area where generic “catch all” contracts will almost never work as the protections of the non-compete agreement must be narrowly tailored to protect the specific and legitimate interests of the business. Mike helps his clients to draft individualized and detailed non-compete provisions that are valid and enforceable under Colorado law. Mike also assists his clients in enforcing and/or defending against the obligations of a non-compete agreement.
Another important issue with non-compete agreements that small business owners often fail to consider is that, by starting the business, the owner may themselves be acting in violation of a non-compete agreement that they signed with a previous employer. Small business owners are often threatened with such violations right as they are getting their business off the ground. Failure to properly address and defend against such threats typically ends up costing the business and it’s owner a great deal of time and money, and can very well result in a court-ordered closure of the business. Mike reviews any and all non-compete provisions that his clients are or could possibly be subject to and assists them in negotiating and defending against the enforcement of any such provisions that may stand in the way of the success of their business. Mike’s clients can rest easy, knowing that they will not be forced to shut down their business because of a discrete provision that they agreed to years ago in a past employment agreement.
A final issue worth noting is the importance of non-compete provisions in the purchase of an existing business. If you are looking to expand your small business by purchasing an existing business, or if you are simply looking to enter the small business arena by purchasing an existing business, the last thing you want to have happen is the seller of the business you purchased to turn around and become a competitor. Not only is the seller intimately familiar with the business they sold you, he or she also knows all of the business’s clients, contractors, distributors, etc. A valid and enforceable non-compete agreement with the seller is absolutely essential. Mike assists his clients in all aspects of buying an existing business, including the drafting, negotiation, and enforcement of non-compete provisions.