Bloomberg (12/31/14) Michelle Jamrisko
The U.S. Federal Reserve is expected to increase its benchmark interest rate around mid-year due to an improving labor market and anticipated higher wages. Rates have been near zero for six years.
“We’re still saying June with risks to September,” says Michael Gapen, chief U.S. economist for Barclays PLC. The Fed “can push rates higher in the middle of the year, even though visually that may look awkward if headline inflation is around zero.”
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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