Reuters (09/03/14) Lucia Mutikani
New orders for U.S. factory goods rose across a broad base of sectors in July, according to the U.S. Department of Commerce. Manufactured goods orders increased 10.5% in July compared with a 1.5% increase in June due to strong demand for aircraft and automobiles. Orders excluding transportation fell 0.8% in July, following a 1.4% increase in June.
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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