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Acquisition Escrow Services
A company is to be acquired and the buyer agrees to certain risks. What happens when the due diligence survey reveals possible liabilities such as: incomplete environmental permits, departure of key managers, serious financial under-performance etc. The buyer has to be protected and can be protected with 100% coverage for these potential liabilities.
The seller also needs to be assured of payment in the event that no liabilities are found.
We at Laurus Solutions can set up an agreement to keep a certain amount of the purchase price in a blocked bank account: the escrow account. The escrow agreement benefits the buyer and seller and the release conditions of the funds have to be expertly negotiated. Given that both buyer and seller seek maximum security, escrow is the best choice.
Securing performance bonds, bid bonds, multi-party investment and fractional ownership structures are other escrow applications.
