Business Wire (06/13/2014)
Volt Information Sciences Inc. reported net revenues of $451.5 million in the second quarter of 2014, down 12% from $519.7 million in the first quarter of 2013. The company reported a net loss of $3.5 million, down 80% from $17.5 million.
“We are particularly pleased with our staffing segment results, as we grew operating income by over 400% on a year-to-year basis, despite a 15% decline in revenue,” said Ron Kochman, Volt president and chief executive officer.
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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