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Re: Valuing a business for sale that I want to buy

Tobbe, post: 197846 wrote:
Thanks for that advice Pro,

I am going to meet with the owner today and I have lots of questions, one of them related to your point about spread of customers. Like you said if the business relies on only a small number of large customers then that is a bigger risk.

They have offered a 2 year period after sale where the current owner can’t compete. Sounds short to me but what is the norm?

This business I am looking at is a steel & aluminium manufacturer.


Competition clauses in sales contracts rarely hold water in Court for anything more than 12 months. It depends on the geographic area also. 2 years is pretty normal.