Excerpt from Practical Guidance

A Look At Tax Treatment Of Noncompetes In M&A: Part 1

By Peter Miller (December 21, 2021, 6:16 PM EST) -- This two-part article discusses, from a tax perspective, the value of covenants that restrict a seller of business assets from competing against the purchasing party. It also describes the tax implications tied to such agreements and to goodwill, which is complementary to rights the seller surrenders in a noncompete agreement as part of the overall deal.

The allocation of value to intangible assets is largely a subjective exercise: Accordingly, the judgment of parties deciding upon such allocations can be prone to challenges because of significant tax implications that may impact the merits of the deal to one party or the other....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!