Bloomberg (10/08/14) Michelle Jamrisko
Chicago Federal Reserve Bank president Charles Evans says the U.S. economy has not yet returned to “full labor-market health.” Rather, “At 5.9%, the unemployment rate remains above what most people think of as its long-run neutral level,” he says. The long-run neutral rate of unemployment lies between 5.2% and 5.5%, according to Fed estimates.
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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