I thought the following might help better explain
Post# of 155577
(Total Views: 395)
Posted On: 02/17/2024 7:33:54 AM
I thought the following might help better explain what I am saying about an acquiring company being indemnified by the acquired company, such as NSF being indemnified by Amarex.
The indemnification arrangements in mergers and acquisitions (M&A) can vary and are typically negotiated between the acquiring company and the acquired company as part of the deal terms. Indemnification provisions are designed to allocate risks between the buyer and the seller.
In many cases, the acquiring company seeks indemnification from the acquired company to protect itself against certain liabilities that may arise post-acquisition. These liabilities could include legal claims, breaches of representations and warranties, tax liabilities, or other undisclosed issues. The indemnification provisions are usually outlined in the acquisition agreement and specify the scope, limitations, and duration of indemnification.
The acquired company may agree to indemnify the acquiring company up to a certain amount or for a specified time period. Indemnification may be part of a holdback mechanism where a portion of the purchase price is retained in escrow for a period of time to cover potential indemnification claims.
The indemnification arrangements in mergers and acquisitions (M&A) can vary and are typically negotiated between the acquiring company and the acquired company as part of the deal terms. Indemnification provisions are designed to allocate risks between the buyer and the seller.
In many cases, the acquiring company seeks indemnification from the acquired company to protect itself against certain liabilities that may arise post-acquisition. These liabilities could include legal claims, breaches of representations and warranties, tax liabilities, or other undisclosed issues. The indemnification provisions are usually outlined in the acquisition agreement and specify the scope, limitations, and duration of indemnification.
The acquired company may agree to indemnify the acquiring company up to a certain amount or for a specified time period. Indemnification may be part of a holdback mechanism where a portion of the purchase price is retained in escrow for a period of time to cover potential indemnification claims.
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