Los Angeles Times (04/25/12) Marc Lifsher
Since California’s economy has shown signs of improvement and its unemployment rate fell to 11% in March, FED-ED, a federal extension of unemployment insurance benefits, will end May 12. This means that nearly 100,000 unemployed residents will lose jobless benefits at that time. Additionally, the maximum time for benefits will fall from 99 weeks currently to 89 weeks on May 13, 79 weeks on May 27, and 73 weeks on Sept. 2.
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.
Home