Bloomberg (05/30/14) Victoria Stilwell
Business activity in the Chicago area as measured by the Institute for Supply Management-Chicago Inc.’s business barometer increased to 65.5 in May from 63 the previous month, a seven-month high. The 46 economists surveyed by Bloomberg had predicted a reading of 61. There has been growing demand for durable goods, though faster gains in the labor market will be needed to create more wage growth, boost consumer purchases, and fuel more factory orders.
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.
Home