Bloomberg (07/23/14) Nina Glinski
According to the International Monetary Fund, the U.S. Federal Reserve may have reason to keep interest rates near zero due to muted inflation and the 2014 slowdown that is prolonging the recovery of the labor market. IMF forecast 2.0% 2014 growth last month but has since reduced its annual forecast to 1.7% due to contraction in the first quarter. It anticipates 3.0% growth next year, the fastest expansion since 2005.
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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