Reuters (01/26/12)
Jobless claims climbed by 21,000 to a seasonally adjusted 377,000 in the week ended Jan. 21, the U.S. Labor Department reports. However, the underlying trend continued to point to improving labor market conditions. Economists polled by Reuters had forecast claims increasing to 370,000. The four-week moving average for initial claims, seen as a better measure of labor market trends, fell 2,500 to 377,500.
Buyers of a business generally expect sellers to be responsible for certain liabilities relating to when the seller owned its business—a concept mergers and acquisitions professionals refer to as indemnification. Indemnification is one of the most heavily negotiated, and potentially most significant, provisions of a purchase agreement, and understanding the terminology common to such agreements is essential when negotiating a deal. Attorney Paul Pincus of Ortoli Rosenstadt LLP explains what sellers are liable for, how a seller’s liability may be limited, and how buyers may seek to fund potential indemnity claims.
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