New York Times (02/03/12) Motoko Rich
The U.S. economy added 243,000 jobs in January, gaining momentum with a second straight month of better-than-expected gains, the U.S. Labor Department reported Friday. The unemployment rate slipped to 8.3%. The private sector remained the engine of new job gains, with private sector companies adding 257,000 jobs in January. Manufacturing, professional and business services, and leisure and hospitality were the industries with the biggest increases.
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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