Bloomberg Business Week (08/30/12) Alex Kowalski
Consumer spending in the U.S. rose in July at the fastest pace in five months, with spending increasing 0.4% last month on a seasonally adjusted basis, according to the U.S. Department of Commerce. The uptick was the first increase in consumer spending in three months. The median estimate of 76 economists surveyed by Bloomberg called for a 0.5% gain in spending. Personal income, meanwhile, rose 0.3% for the third straight month.
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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