Associated Press (09/05/12)
The U.S. Department of Commerce reported Tuesday that U.S. construction spending fell 0.9% in July from the month before, the largest amount in a year. The decline followed three consecutive months of gains driven by increased home and apartment construction. Outlays on single-family homes bumped up 1.5% and spending on apartment construction rose 2.8%, adding to other evidence that suggests the residential real estate market is slowly mending.
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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