Escrow Agreements in Private M&A Deals

Summary

Escrow agreements may be used in private M&A transaction where 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. 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 addresses key considerations when drafting and negotiating escrow agreements in M&A transactions.