Reuters (09/02/15) Lucia Mutikani
Orders for U.S. factory goods increased for a second consecutive month in July on robust demand for automobiles. New orders for manufactured goods rose 0.4% after an upwardly revised 2.2% increase in June, according to the U.S. Department of Commerce. Economists surveyed by Reuters had forecast factory orders would increase 0.9% in July after rising 1.8% in June. Orders for nondefense capital goods excluding aircraft rose 2.1%.
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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