Fortune (04/30/12) Stephen Gandel
Wall Street firms have added thousands of jobs over the past two years, but now they are preparing to cut more jobs than they added. Wall Street recruiters say banks could soon cut almost 21,000 jobs from their New York securities divisions. According to Boston Consulting Group, banks are likely to cut 12% of their work force in the short term. However, most of the job losses will be at large firms; smaller firms are still hiring.
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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