Wall Street Journal (04/10/12)
Fifty-five percent of the executives recently surveyed by Chase
Commercial Banking plan to hire additional employees this year.
Just 4% said they intend to cut jobs. Some 49% of the executives
said they are optimistic about the U.S. economy, up from 39% last
year. Chase surveyed executives at 1,000 U.S. companies with
annual revenues between $10 million and $500 million.
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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