Risk perception regards non-compete clause

In practice, non-compete clauses are common in acquisition agreements – the clauses impose professional restrictions (ie limit professional activities in certain territories or business segments) on the key employees after the acquisition is completed. Assuming that the key employees generally have the core know-how of the target business, then without a non-compete clause such employees may continue the same business (possibly with the same clientele) after the acquisition, consequently reducing the value of the target company.