Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
How the Escrow Distribution Trap Delays M&A Payouts for Years
Lucas and Luna break down a surprisingly common M&A pitfall: the escrow distribution trap. Using the real-world case of a 2021 middle-market industrial sale that ended up in escrow litigation for five years, they explain how sellers give up control of their own money at closing, how ambiguous payout triggers in escrow agreements create leverage for buyers to withhold funds, and what a carefully drafted 'single-trigger' release clause looks like. By the end, you'll understand why escrow is not a neutral holding tank — it's a post-close negotiation table where the…
The skinny
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