Bloomberg (05/16/13) Shobhana Chandra; Alex Kowalski
The number of people who applied for unemployment benefits last week rose, sparking concern that the slowdown in the economy is resulting in layoffs. Jobless claims rose 32,000 to 360,000 in the week ended May 11, according to the U.S. Department of Labor. Economists surveyed by Bloomberg had forecast an increase to 330,000. The four-week average of new jobless claims climbed to 339,250 last week from 338,000.
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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