Bloomberg (06/17/14) Jeanna Smialek; Shobhana Chandra
The consumer price index went up by 0.4% in May, according to the U.S. Department of Labor, signaling that inflation will move closer to the U.S. Federal Reserve’s goals and that the central bank can continue to scale back its unprecedented bond-buying program. The increase was the largest since February 2013 and follows a 0.3% increase from the following month. The 81 economists surveyed by Bloomberg had predicted a 0.2% rise.
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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