Bloomberg Businessweek (01/08/15) Victoria Stilwell
The Bloomberg Consumer Comfort Index rose from 42.7 the previous week to 43.6 in the week ended Jan. 4. It is the highest reading since October 2007. Consumer confidence is increasing as fewer people are laid off and more find jobs. Low gas prices and mortgage rates also are influencing consumer optimism. Employers are holding onto seasonal workers as the economy picks up, and the need to keep staff is likely to lift wages.
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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