Reuters (08/04/15) Lucia Mutikani
New orders for manufactured goods increased 1.8% in June after a 1.1% decline in May, according to the U.S. Department of Commerce. Orders for transportation equipment increased 9.3% in June, thanks to a 65.4% increase in aircraft bookings. Orders for nondefense capital goods excluding aircraft increased 0.7% in June, down from a 0.9% increase in May.
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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