Associated Press (03/15/12) Christopher S. Rugaber
According to surveys by the Federal Reserve Bank of Philadelphia and the Federal Reserve Bank of New York, manufacturing in the two regions is growing at a healthy rate, and factories in the regions have been hiring more employees. An increase in automobile sales and rising demand for heavy equipment are keeping factories busy. However, the surveys show new orders and shipments have slowed, suggesting that future activity may be weaker.
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.
Home