Wall Street Journal (05/15/14) Eric Morath; Sarah Portlock
Consumer prices increased last month at their strongest rate in almost a year, a sign of modest inflation pressures. The consumer price index rose a seasonally adjusted 0.3% in April from March, according to the U.S. Department of Labor. Core prices, which exclude the volatile food and energy categories, increased 0.2% in April. The gains were in line with the forecasts of economists polled by the Wall Street Journal.
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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