Bloomberg (04/11/14) Lorraine Woellert
The producer price index increased 0.5% in March, up from a 0.1% decrease in February, according to the U.S. Department of Labor. A Bloomberg survey of economists had called for a 0.1% increase. The rise was led by the largest gain in the cost of services in four years. Core prices, which exclude the cost of food and energy, rose 0.6%.
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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