Dow Jones Newswires (01/27/12) Josh Mitchell
The U.S. economy grew at its fastest pace in more than a year and a half in the final three months of 2011, signaling a stronger recovery took hold despite troubles in other parts of the world. The U.S. economy grew 2.8% in the final three months of 2011, propelled by increases in consumer spending and business inventories, according to data from the U.S. Commerce Department. Economists surveyed by Dow Jones Newswires expected 3.0% growth.
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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