Bloomberg (09/10/13) Michelle Jamrisko
Consumer sentiment has become a less reliable gauge of the spending that supports growth, because U.S. consumers’ economic outlook increasingly is influenced by politics, according to data from the Bloomberg Comfort Index. Furthermore, automobile sales last month were the best they’ve been since November 2007, but two consumer confidence surveys showed declines in confidence, indicating that greater pessimism doesn’t necessarily result in reduced spending.
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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