Bloomberg (12/19/13) Michelle Jamrisko
Jobless claims rose by 10,000 to 379,000 in the week ended Dec. 14, according to the U.S. Department of Labor. The increase was a nearly nine-month high, reflecting the fluctuation in claims that often occurs near the end-of-year holidays. Economists polled by Bloomberg had forecast a decline to 336,000. The four-week moving average rose to 353,500 from 330,250 a week earlier.
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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