Kira Systems M&A deal points study: Non-competitive provisions
This report summarizes our findings on non-competition provisions in recent private target M&A transactions. Specifically, we reviewed (1) the prevalence of non-competition provisions in private target M&A agreements publicly filed in 2018 and 2019; (2) the prevalence and type of non-competition provisions in asset deals versus equity deals; (3) the prevalence of non-competition provisions applicable to employees of the selling entity; and (4) the association between the type of selling entity (private equity versus venture capital) and the type of non-competition provision.
Kira’s state-of-the-art machine learning technology automatically identifies and extracts information from contracts and comes with over 900 built-in provision models. Our team of lawyers trains Kira to automatically find provisions by giving it sample language of that provision culled from publicly filed agreements. Once Kira has sufficient examples of a provision, it can find that provision in new agreements imported into it.
Kira is not limited to publicly filed documents. With Kira, professionals can conduct their own deal point studies on the documents of their choosing—for example, a law firm’s deal documents from its document management system—to find information of interest to them. The information gathered can be shared throughout the organization and used for drafting and negotiating future agreements or revising standard forms.
For a full list of the currently available private target M&A deal point-related provisions that Kira can identify out of the box, please see the end of this report.