Bloomberg (09/19/13) Victoria Stilwell
U.S. jobless claims climbed less than expected last week as California and Nevada worked through a backlog of applications from the previous week. Claims rose by 15,000 to 309,000 in the week ended Sept. 14, according to the U.S. Department of Labor. A Bloomberg forecast of economists had anticipated 330,000 claims. The less-volatile four-week moving average declined to 314,750, the lowest since October 2007.
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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