Non-Compete Agreements When Selling
Non-compete agreements protect the buyer's investment. Understanding standard terms helps you negotiate fair restrictions.
Why Non-Competes Matter
Buyers pay for your patient relationships. Without a non-compete, you could open across the street and take patients back.
Standard Non-Compete Terms
Geographic Scope
| Area Type | Typical Radius |
|---|---|
| Urban | 2-5 miles |
| Suburban | 5-10 miles |
| Rural | 10-20 miles |
Duration
- Standard: 3-5 years
- Negotiable: 2-3 years for shorter transitions
- Some states limit to 2 years
State Variations
Non-compete enforceability varies:
- Strong enforcement: FL, TX, VA
- Moderate: CA (limited), NY, IL
- Restrictive: CA (generally unenforceable for employees)
Negotiation Points
What You Can Negotiate
- Geographic radius (narrower is better for you)
- Duration (shorter is better)
- Exceptions (charity work, teaching)
- Buyout clause
What Buyers Want
- Broad geographic protection
- Long duration
- No loopholes
- Enforceable in your state
Exceptions to Consider
- Dental school teaching
- Charity/volunteer work
- Retirement (no practice)
- Relocation outside area
Non-Solicitation Clauses
Often included:
- No soliciting staff
- No soliciting patients
- No contacting referring dentists
Bottom Line
Non-competes are standard and reasonable. Negotiate fair terms that protect the buyer without overly restricting your future options.
Non-compete guidance? Contact DentalBridge.