Associated Press (05/15/14) Paul Wiseman
Industrial production declined 0.4% in April after increasing 0.7% in March, according to the U.S. Federal Reserve. Economists expect the decrease to be temporary because other recent measures of manufacturing have been positive. The Institute for Supply Management’s manufacturing index increased to 54.9 last month from 53.7 in March. Overall industrial output—which includes manufacturing, mining, and utilities—declined 0.6% last month, the Fed said.
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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