Associated Press (07/05/12)
The service sector in June grew at the slowest pace in nearly two and a half years, more evidence that the economy has weakened. However, those same companies increased hiring last month. The Institute for Supply Management reported on July 5 that its index of nonmanufacturing activity fell to 52.1 last month, from a May reading of 53.7, the lowest reading since January 2010. The survey’s employment index rose to 52.3, up from 50.8 in May.
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.
Home