Wall Street Journal (04/05/15) Ben Leubsdorf
Private sector employees saw their average hourly earnings rise seven cents to $24.86 in March, up 0.3% from the previous month, according to the U.S. Department of Labor. Earnings increased 0.1% in February and have maintained a 2.0% annual pace over the last five years. Hourly earnings increased 2.1% from the same time last year, but experts say there is not yet enough evidence to determine whether wages are notably improving overall.
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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