Bloomberg (05/05/12) Shobhana Chandra
The 115,000 increase in payrolls reported by the U.S. Department of Labor has increased concern that the nearly three-year-old economic expansion is cooling. “Employers are hiring, they’re just hiring at a very modest rate,” says Jonas Prising, president of the Americas at ManpowerGroup. “The current growth rate of employment is probably consistent” with economic growth of 2%, he says.
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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