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The FTC Proposes Ban on Non-Competes: The Implications for M&A Transactions
Kelley Drye – On January 5, 2023, the Federal Trade Commission proposed a sweeping new rule which, if enacted in its draft form, would ban virtually all non-competition agreements, including those already in effect. The Proposed Rule is very broad with two notable exceptions: it will not ban restrictive covenants entered into in connection with the sale of a business or a franchise agreement. This Client Advisory discusses the Proposed Rule’s limited exception for certain mergers and acquisitions.