New York Times (05/29/12) Shaila Dewan
Unemployment benefits are ending for hundreds of thousands of U.S. workers. Meanwhile, some states are making it more difficult for people to qualify for the first few months of benefits. In Florida, more than half of all unemployment benefit applicants are denied. Nationally, unemployment is hovering at 8.1%, and there are more than three job seekers for every job opening.
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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