Bloomberg (03/03/14) Shobhana Chandra
U.S. consumer spending rose 0.4% in January, up from a downwardly revised 0.1% in December, according to the U.S. Department of Commerce. Consumer spending accounts for 70% of the U.S. economy. Economists surveyed by Bloomberg had forecast a rise of 0.1%. Hiring improvements and increasing housing prices likely will drive consumer spending growth in the future.
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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