Wall Street Journal (09/29/14) Ben Leubsdorf
Consumer spending rose in August, suggesting that more robust household spending could foster third-quarter economic growth. Personal consumption spending increased a seasonally adjusted 0.5% last month from July, according to the U.S. Department of Commerce. Spending held steady in July, revised up from an initially estimated 0.1% decline. Economists polled by the Wall Street Journal had forecast spending would increase 0.5% in August.
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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