Beware non-compete, earnout clauses.

The sellers of a magazine publishing company may be asked to accept a non-compete agreement or an earnout as partial payment. A non-compete covenant is an promise by the seller not to take part in publishing operations that compete with those of the business being sold. Such agreements Usually specify a time period for which agreed-to restrictions will remain effective.

Deborah J. Schwab, column editor, can be reached at Debbie_Schwab@cowlesbiz.com.

John E. Hempstead is a managing director of Hempstead & Co. Inc., a Haddonfield, New Jersey-based investment banking firm t