Due to the effects of Hurricane Sandy, much of the Mid-Atlantic region is in a state of emergency. Therefore, ASA headquarters is closed, and Staffing Today will not be delivered until Wednesday, Oct. 31.
Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?
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.
On Assignment Reports Results for Third Quarter 2012
On Assignment News Release (10/25/12)
On Assignment Inc.’s third-quarter results show a 139.1% jump in revenue year-over-year to $388.3 million, with $202.7 million of that amount tied to Apex Systems, which it acquired in May. Revenue rose 14.3% over the same period without factoring in Apex Systems’ results. The staffing firm also reports net income of $17.4 million, up from $8.5 million in the second quarter and $7.8 million in the third quarter of 2011.
On Assignment president and chief executive officer Peter Dameris said, “I’m very pleased that, despite the macroeconomic challenges, we grew our revenues year-over-year approximately 14% on both a pro forma basis (including Apex) and for our legacy businesses (which excludes Apex). At the same time, our adjusted earnings before interest, taxes, depreciation, and amortization (both pro forma and legacy businesses) grew at twice the rate of our revenues.”
GDP Rises 2%, Helped by Consumers
Wall Street Journal (10/26/12) Jeffrey Sparshott; Eric Morath
U.S. economic growth improved in the third quarter as consumers and the federal government spent more and the housing sector picked up. GDP in the second quarter of 2012 was initially estimated at 1.5%, revised up to 1.7%, and then revised down to 1.3%. The slow pace of growth has contributed to high unemployment. So far this year, employment growth has averaged 146,000 jobs per month, a decline from 153,000 last year.
Firms Hit Brakes Before Fiscal Cliff
Wall Street Journal (10/25/12) Scott Thurm
Chief executives increasingly are concerned about the impact of the “fiscal cliff” on their profits. Some business groups are urging lawmakers to take steps to prevent the fiscal cliff, which will occur when the Bush-era tax cuts expire and spending cuts are enacted simultaneously at the start of the new year, but the chief executives of 80 U.S. corporations recently signed a manifesto calling on Congress to use tax increases and spending cuts to lower the federal deficit.
Outpace the Competition in 2013—ASAPro Webinar Next Month
Hear what more than 5,000 staffing firm clients, job seekers, and internal staff have to say about the staffing industry—and what your firm can do to increase awareness, loyalty, referrals, and retention. Attend the ASAPro Webinar “Outpace the Competition in 2013: A Guide to Staffing Clients, Job Candidates, and Internal Staff,” Thursday, Nov. 6, 3–4 p.m. Eastern time. To help you position your firm for success in the coming year, Eric Gregg of ASA corporate partner Inavero will share the results of recent industry research conducted by Inavero with ASA corporate partner CareerBuilder.
ASAPro Webinars are $295 for nonmembers and qualify for continuing education hours toward ASA certification renewal. Join ASA and enjoy ASAPro Webinars for FREE.
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