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Definition of Escrow

Escrow describes an arrangement where a third party holds funds (or other assets, documents, etc.) and only releases them upon the fulfillment of certain obligations by the parties to a transaction. 

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    • Mergers & Acquisition

    Earn-Outs

    Newer companies may see an earn-out as a way to sell high on its growth potential and bet on future success to maximize the payout under the deal.