Bloomberg (01/26/12) Bob Willis
Orders for U.S.-made durable goods rose 3.0% in December after a revised 4.3% gain the prior month that was more than previously estimated, the U.S. Commerce Department reports. Economists projected a 2.0% increase, according to the median forecast in a Bloomberg News survey. Increases in consumer and business spending, combined with lean inventories, may keep driving production in coming months and spur the expansion.
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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