Wall Street Journal (08/11/14) Lizette Chapman
Fiverr International Ltd. has raised $30 million from investors, bringing its total outside capital to $50 million. The services marketplace startup will use the money to promote its new product and expand internationally. Fiverr caters to a wide swath of creative and professional freelancers and allows users to rate sellers. Its platform has more than three million gigs in 196 countries and includes millions of buyers and sellers.
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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