Wall Street Journal (02/06/15) Jon Hilsenrath
U.S. Federal Reserve officials are struggling to determine how hot they can let the strengthening labor market run before raising short-term interest rates from near zero. Although the market is showing signs of improvement, low wage growth and inflation remain. Fed chairman Janet Yellen will discuss lifting interest rates with colleagues during a two-day policy meeting starting on March 18. The bank will be “patient” when it comes to raising rates.
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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