USA Today (12/13/13) Susan Davis
The U.S. House has approved a two-year bipartisan budget framework in a vote of 332 to 94 that will eliminate the threat of a government shutdown and modestly reduce the deficit over the next decade. Nearly equal numbers of Democrats, 163, and Republicans, 169, voted in favor of the measure. The deal sets top-line federal spending figures through fiscal year 2015, and partially alleviates unpopular spending cuts known as the sequester.
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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