When selling my business, should I agree to a consulting or non‑compete agreement?

Transition and consulting agreements can help buyers run the business successfully. These agreements typically last between three and twelve months, during which the seller provides guidance 20–40 hours per week, gradually decreasing as the buyer gains confidencehttps://vennlawgroup.com/transition-consulting-agreements/#:~:text=1. Compensation can be hourly or a fixed amount, sometimes including bonuses tied to milestoneshttps://vennlawgroup.com/transition-consulting-agreements/#:~:text=and%20rhythms%20under%20fresh%20leadership. Non‑compete clauses are common and prohibit the seller from competing in the same market or geography for one to three years to protect the buyer’s investmenthttps://vennlawgroup.com/transition-consulting-agreements/#:~:text=seller%20from%20immediately%20starting%20or,direct%20competition%20from%20the%20seller. Whether you should accept these terms depends on your post‑sale plans, willingness to stay involved and the value of your knowledge. Well‑negotiated agreements clarify expectations, compensation and duration. Prime 100 works with both parties to structure transition agreements that benefit everyone. We help sellers determine appropriate time commitments and compensation, ensure non‑compete terms are reasonable and comply with local law, and facilitate a smooth handover that supports the buyer’s success while protecting your interests.