Bloomberg (06/18/13) Lorraine Woellert
The cost of living in the U.S. rose less than forecast in May, restrained by the first decline in food prices in nearly four years and signaling inflation remains under control. The consumer price index rose 0.1% after declining 0.4% in April, according to the U.S. Department of Labor. The median forecast of 82 economists polled by Bloomberg called for a rise of 0.2%. The core index, which excludes volatile food and fuel costs, rose 0.2% as forecasted.
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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