How a Non Compete Almost Derailed The Sale Of This $14M Business
December 16, 2015 |
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In this episode John Warrillow interviews serial entrepreneur, Kevin Kruse. As Kruse moved to exit Axiom, the ultimate buyer wanted to avoid competing with Kruse down the road… and that’s where the negotiations hit a giant snag.
How long will you agree to be sidelined when you sell your company?
Your “non compete” is an agreement you sign promising not to jump back into the industry you’re bailing out of. You may think the idea of starting a business similar to the one you’re in today is far fetched, but after tiring of golf and failing as an angel investor, many cashed out entrepreneurs decide to start a business just like the one they left – which is where your non compete can be a hindrance.
In this episode of Built to Sell Radio, John Warrillow interviews Kevin Kruse. Kruse is the kind of guy you just know is going to be successful. Kruse has written six books – one of which was a New York Times Bestseller – and sold several businesses before he started Axiom, a training company he built up to $14 million in sales. As Kruse moved to exit Axiom, the ultimate buyer wanted to avoid competing with Kruse down the road… and that’s where the negotiations hit a giant snag.
As you listen, you’ll notice Kruse went out of his way to merchandise his managers as the heroes in his company’s story. Your management style is one of the eight factors we measure when evaluating your business’ readiness to sell. To find out how your business is doing on all eight drivers, complete your Value Builder questionnaire.
Our guest
In pursuit of the American Dream, Kevin Kruse started his first company when he was just 22 years old. He worked around the clock, literally living out of his one-room office and showering each day at the YMCA, before giving up a year later deeply in debt. But after discovering the power of Wholehearted Leadership and Employee Engagement Kevin went on to build, and sell, several multimillion-dollar technology companies, winning both Inc 500 and Best Place to Work awards along the way. Kevin Kruse is a New York Times best selling author, an Inc 500 start-up founder, and his newest book, 15 Secrets Successful People Know About Time Management, is based on groundbreaking research into the habits of Olympic athletes, straight-A students, over 200 entrepreneurs and 7 billionaires, including Mark Cuban, Dustin Moskovitz, Andrew Mason, Mark Pincus, Kevin Harrington and others.Related to this topic
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