Escrow Agreements in Private M&A Deals


Summary

In a private M&A transaction, if a portion of the consideration is to be held back or set aside and dispersed following the closing upon the resolution of one or more transaction provisions, the parties will normally enter into an escrow agreement with a third party to hold such consideration for distribution at a future date in accordance with the terms of such agreement. This practice note discusses considerations in drafting and negotiating escrow agreements in M&A transactions.