Bloomberg (03/13/15) Rich Miller
Although the number of jobs has increased, wages for U.S. manufacturing workers have not kept pace. Average hourly earnings for manufacturing industry employees rose 1.9% in 2014 after increasing 1.8% in 2013, according to the U.S. Department of Labor. However, the limited gains mean U.S. workers are more competitive compared with workers in China, where average urban wages rose 10.2% in the third quarter from a year earlier.
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.
Home