Where escrow fits an acquisition
- Holding the deposit during exclusivity and due diligence
- Securing the purchase price ahead of closing
- Holdback / retention amounts for post-closing adjustments
- Staged release tied to transfer of assets and accounts
Holdbacks and earn-outs
A portion of the price is often retained in escrow after closing to cover warranty breaches or performance adjustments. This protects the buyer while assuring the seller the funds exist and will release on the agreed terms.
Online business transfers
For digital businesses, escrow coordinates the handover of domains, code, accounts and customer data against release of funds — so neither side transfers everything on trust.
