New York
I am a small partner, 15%, in a company. Which I helped build from its inception 22 years ago. I am trying to work things out amicably with my soon to be ex-partner. I want to leave to start my own company, in the same field. This means we will compete with each other. A few of the products we represent have web listings showing all the authorized companies to buy the products from.
I have no current non-compete. However, partner wants me to sign a non-compete as part of the buyout. As far as going after his clients and employees for a period between 3-5 years, which is still being negotiated. I don't have a problem with this, because I have no intentions on actively going after his clients or employees.
Now, he states that if someone calls me who is or once was a client of his, I can't do business with them for x number of years. Understandable if I sent a mailing, called or approached his clients to come join me. It's also understandable that the company spent money, time and effort building that database.
What if it's a client he hasn't dealt with in a long time or possibly a different contact person altogether. Or they weren't satisfied with his service. Or whatever the reason, they called me because they saw my name listed as an authorized reseller. They might not even know we were once associated. My point is I feel it's free game at this point.
He also is stating that any prospects he has as well. So if they called him first and their in his database regardless if they did business together, I can't deal with them for x number of years. Which made me think, how the heck am I to track the thousands of people in his database? Get this; he wants to give me a copy of the database so I can check. So do I first start all my initial communication with people "What is your company name so I can check my database to see if I can do business with you, before we waste time getting into your needs?"
The part that hurts me the most is that it's my brother. I am leaving because I'd rather lose a partner than a brother. And now I am scared I might lose both. I am even willing to walk away without signing anything and leaving without collecting my buyout. It will buy me piece of mind and still be able to build my new company.
I am a small partner, 15%, in a company. Which I helped build from its inception 22 years ago. I am trying to work things out amicably with my soon to be ex-partner. I want to leave to start my own company, in the same field. This means we will compete with each other. A few of the products we represent have web listings showing all the authorized companies to buy the products from.
I have no current non-compete. However, partner wants me to sign a non-compete as part of the buyout. As far as going after his clients and employees for a period between 3-5 years, which is still being negotiated. I don't have a problem with this, because I have no intentions on actively going after his clients or employees.
Now, he states that if someone calls me who is or once was a client of his, I can't do business with them for x number of years. Understandable if I sent a mailing, called or approached his clients to come join me. It's also understandable that the company spent money, time and effort building that database.
What if it's a client he hasn't dealt with in a long time or possibly a different contact person altogether. Or they weren't satisfied with his service. Or whatever the reason, they called me because they saw my name listed as an authorized reseller. They might not even know we were once associated. My point is I feel it's free game at this point.
He also is stating that any prospects he has as well. So if they called him first and their in his database regardless if they did business together, I can't deal with them for x number of years. Which made me think, how the heck am I to track the thousands of people in his database? Get this; he wants to give me a copy of the database so I can check. So do I first start all my initial communication with people "What is your company name so I can check my database to see if I can do business with you, before we waste time getting into your needs?"
The part that hurts me the most is that it's my brother. I am leaving because I'd rather lose a partner than a brother. And now I am scared I might lose both. I am even willing to walk away without signing anything and leaving without collecting my buyout. It will buy me piece of mind and still be able to build my new company.
