Bloomberg BusinessWeek (04/16/12) Rich Miller
The economy seems more stable this year than it did last year. Company and household balance sheets are stronger, and retail sales are rising. “The recovery seems more broad-based in the U.S.,” says Jonas Prising, president of the Americas at ManpowerGroup. “I see it across industries and I see it across geographies.” Risk also is lower, he notes. “The external environment and the factors that affected it last year are a lot less severe this year.”
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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