MarketWatch (05/03/12) Jeffry Bartash
The U.S. Department of Labor reports a 0.5% decrease in U.S. productivity during the first quarter, less than the 1% drop predicted by economists in a MarketWatch survey. The manufacturing sector, however, experienced a 5.9% jump in productivity. The DOL reports a 2.7% annual jump in goods and services produced, a 3.2% gain in hours worked, and a 2% rise in unit-labor costs. It also shows a 0.9% inflation-adjusted decline in hourly compensation.
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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