The FTC Finalizes its Non-Compete Ban: What M&A Attorneys Should Know

Summary

This article discusses the U.S. Federal Trade Commission's (FTC) final rule (available on the FTC's website until published in the Federal Register) banning most employee non-compete agreements (the Final Rule), and how it may affect M&A practice. Although the Final Rule provides a broader exemption for non-compete arrangements in the context of M&A transactions than the FTC's original proposal, it nonetheless leaves M&A attorneys, buyers, and sellers alike with important questions as to the permissible use of non-compete clauses as a post-closing deal protection measure.