Wall Street Journal (05/06/13) Kathleen Madigan
Employers are relying more on temporary employees rather than hiring permanent staff, so even though the jobless rate has declined to 7.5%, some observers are concerned. Many of the recent employment gains came from the temporary-help sector and from low-wage sectors such as retail. Higher paying jobs in manufacturing were in short supply, and federal, state, and local governments cut jobs.
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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