Federal Reserve Bank of Kansas City (12/19/14)
The Federal Reserve Bank of Kansas City’s December Manufacturing Survey revealed that manufacturing activity in the Plains states grew at a moderate pace, and producers’ expectations for future activity remained at solid levels. The month-to-month composite index rose from 7 in November to 8 in December. The employment index was unchanged for the month, but year-to-year it rose from 10 to 18, its highest level in nearly two years.
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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