USA Today (02/28/13) Tim Mullaney
The U.S. economy grew at an annual pace of 0.1% in the last three months of 2012, the U.S. Department of Commerce reported today, wiping away an initial estimate that said the economy shrank as a big drop in defense spending and weak exports held down growth. The new figure fell short of economists’ consensus forecast that the economy grew 0.5%. A month ago, the government estimated that the economy shrank at a 0.1% annual rate in the quarter.
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