Reuters (03/06/14)
New orders for factory goods fell 0.7% in January, according to the U.S. Department of Commerce. Economists polled by Reuters had forecast a 0.4% drop. December’s orders declined 2.0%, revised from the previous report of 1.5%.
Shipments of new orders also fell in January, for the second consecutive month. Factories are idling as businesses work through excess stock; cold weather also has reduced business activity.
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.
Home