What is a covenant restriction likely following the sale of a law firm?

A covenant restriction following the sale of a law firm typically includes a restriction on competition with the new owners. This type of covenant is designed to protect the value of the law firm by preventing the seller (or departing lawyers) from opening a competing practice or soliciting the former clients of the firm for a specified period of time. It ensures that the new owners can operate without the threat of competitors who have inside knowledge of the existing clients and operations, promoting stability in client relationships and business operations.

In this context, other options do not represent typical covenant restrictions. For instance, increasing client fees or allowing the new owners to represent former clients might not directly relate to the competitive landscape but rather pertain to pricing policies and client representation rights, which are generally outside the scope of restrictive covenants. Unlimited sharing of firm strategies is also unlikely, as confidentiality and the protection of proprietary strategies are paramount in maintaining a competitive edge and retaining client trust. Thus, the correct focus of a covenant restriction in this scenario is indeed the restriction on competition with the new owners.