Wall Street Journal (04/21/14) Eric Morath
Forty-three percent of corporate economists expect their firm or industry to increase hiring over the next two quarters, the highest number since July 2011, according to a National Association for Business Economics poll. Eight percent expect that businesses will reduce hiring over the same time period. Thirty percent of economists in the service sector expect greater hiring compared with two-thirds in goods-producing businesses.
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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