Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Escrow Trap That Left a Seller with No Money for 18 Months
In this episode of The Acquisition Talk, Lucas and Luna dissect a specific M&A escrow trap that nearly sank a $40 million manufacturing deal. They walk through a real case: a founder who agreed to a standard 15% escrow holdback, only to discover the escrow terms allowed the buyer to extend the release date by disputing trivial indemnity claims just before each scheduled disbursement. The seller ended up waiting 18 months for cash that should have been released in 12 months, and lost $800,000 in legal fees fighting unwarranted holdbacks. Lucas explains how escrow mechanics interact with…
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