Indemnification In An Acquisition

In an ideal world, after the deal has closed, the acquisition agreement is filed away, and its existence is forgotten by all parties. Unfortunately, effects of the agreement are often felt long after the deal has closed. There are some key concerns to consider when drafting the indemnification section in an acquisition agreement.

Holding the Purchaser Harmless

The indemnification section will mandate the seller to cover any losses or expenses suffered because of a misrepresentation made by the seller in the agreement or because of the seller's breach of the agreement. There are also several categories of items that are often forgotten but may be appropriate within the section: