U.S. Bureau of Labor Statistics (04/07/15)
There were 5.1 million job openings on the last business day of February, the highest level since January 2001, according to the U.S. Bureau of Labor Statistics. Hires were little changed at 4.9 million over the 12 months ending in February, and separations were little changed at 4.7 million. Within separations, the quits rate was 1.9%—an increase over the past 12 months. The layoffs and discharges rate was 1.1%, little changed from the previous year.
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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