Wall Street Journal (02/07/13) Eric Morath; Sarah Portlock
The number of U.S. employees submitting first-time applications for jobless benefits declined last week by 5,000 to a seasonally adjusted 366,000, according to the U.S. Department of Labor. The four-week moving average, which smoothes out volatility, declined by 2,250 to 350,500. The last time the average level of claims was this low was March 2008, suggesting a modestly improving labor market.
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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