Risk Criteria and Valuation Methods for Valuing Covenants not to Compete
Chartered Business Valuators Institute (CBV Institute)
May 14, 2010
Jeffrey Jones, ASA, CBA, BCB, CBI
Covenants not to compete must be carefully drafted not only for their legal consequences, but also for their accounting and tax treatment. Covenants must meet the legislative and case law test of reasonableness to be enforceable.