Valuing Covenants Not to Compete

About the Course:

This session walks the listener through several models--such as probability adjusted with and without analysis and the estimation of conditional probabilities--used to calculate the value of non-compete agreements. The program discusses many issues that arise in determining how to value Covenants Not to Compete such as:

  • What are some forms of Covenants Not to Compete?
  • What are some of the reasons that non-competes may have little to no value?
  • How should a valuation analyst calculate tax amortization benefits? When should the tax amortization benefit be applied?
  • Should the tax amortization benefit be applied when a company's equity is purchased?
  • What is the common practice in connection with assuming the impact on a company after the non-compete expires?
  • What are some of the expenses that a company might incur if its former employees compete against it?
  • What are some of the reasons that a former employee will not be able to effectively compete against his former employer?
  • How should an analyst factor enforceability on the valuation of a non-compete?
  • How would a former employee having a consulting plan from the former employer affect the value of a non-compete agreement?

Course Leader: William A. Johnston, AIA - IA, Managing Director, Empire Valuation Consultants Mr. Johnston is an Accredited Senior Appraiser (ASA) of the American Society of Appraisers and was one of the first recipients of the ASA's intangible asset designation. He has nineteen years of experience in business and intangible asset valuations. He has managed and performed numerous valuations for financial reporting purposes, including purchase price allocation, goodwill impairment testing, and cheap stock (ASC 718/409a). He currently serves as Vice Chair on the ASA's Business Valuation Committee and is past President of the ASA's New York City Chapter.

Bill also has acted as a guest lecturer at Fordham University, speaking on the topic of intangible asset valuation. He has taught a Center for Advanced Valuation Studies (CAVS) course on purchase price allocation (SFAS 141) and impairment testing (SFAS 142, SFAS 144) for the ASA, as well as its BV301 and BV302 Intangible Asset valuation classes, and has spoken at various ASA events on the topic of purchase price allocation valuations. Mr. Johnston is also a member of the Appraisal Issues Task Force (AITF) and currently serves as Empire's chairperson for its Technical and Standards Committee. Bill received his B.S. in Finance/International Business from The Pennsylvania State University and his MBA in Finance from NYU's Stern School of Business.

Course Length: Approx. 1.5 hours

$295 USER

Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at