MarketWatch (01/03/12) Goldstein, Steve
The Institute for Supply Management’s manufacturing index for December climbed to 53.9% from 52.7% in November, which is a six-month high. Economists polled by MarketWatch had anticipated a 53.0% reading. Any reading above 50% indicates expansion. The production and employment gauges each rose 3.3 points, and there was a 0.9 percentage point gain for the new orders index.
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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