InsightsIndemnification – What Exactly is a seller Responsible for when selling its Business
Although every seller would like to sell its business “as is” and walk away from any associated liabilities, few deals get done that way. Instead, subject to negotiated limitations, most buyers expect the seller to be responsible, and make the buyer whole, for certain known and unknown liabilities relating to when the seller owned its business – a concept M&A professionals refer to as indemnification. Indemnification provisions are essential to allocating risk between the parties, are complex, and require careful drafting.