Bloomberg (05/01/14) Michelle Jamrisko
The number of people applying for unemployment benefits in the week ended April 26 rose by 14,000 to 344,000, according to the U.S. Department of Labor, an unexpected increase attributed in part to seasonal adjustments around spring break and the Easter holiday. Economists surveyed by Bloomberg had forecast claims of 320,000. The four-week moving average of new claims increased by 3,000 to 320,000.
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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