Bloomberg (06/13/14) Jeanna Smialek
The producer price index dropped 0.2% in May, the first decrease in three months, according to the U.S. Department of Labor. The 71 economists surveyed by Bloomberg predicted a 0.1% increase. Costs have gone up 2% over the past year, and the April producer price index had seen a 0.6% gain. The U.S. Federal Reserve has said it wants inflation to increase closer to its 2% goal.
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