MarketWatch (06/06/14) Sara Sjolin
U.S. Federal Reserve Gov. Jerome Powell said on Friday that the U.S. labor market has recovered substantially since the economic downturn, but he is concerned about the declining workforce participation rate. The workforce participation rate “has declined significantly more than simple demographics would indicate,” Powell said. “That suggests that there’s a group of people who are not formally in the labor force, but would still like to work.”
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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