Associated Press (05/01/14)
This winter’s cold-weather economic slowdown appears to be thawing. Construction rose 0.2% in March after a 0.2% drop in February, putting construction at a seasonally adjusted rate of $942.5 billion, an 8.4% increase since last year, according to the U.S. Department of Commerce. Spending on residential construction is at its strongest since May 2008, with apartment spending up 4.3% in March and single-family home spending up 0.2%.
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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