Wall Street Journal (09/16/14) Nick Timiraos
The median annual household income in the U.S. increased 0.3% last year, or a total of $180, to an inflation-adjusted $51,939, according to the U.S. Census Bureau. It was the first increase in six years, although it was not statistically significant and did little to help worker incomes, which are about 8% below their level of 2007. Median incomes are down 4.0% since the recession ended in 2009, back to levels last seen in 1996.
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