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Illinois Mergers & Acquisitions Questions & Answers

1 Answer | Asked in Mergers & Acquisitions for Illinois on

Q: Equity Escrow works in M&A

I am trying to educate myself how Equity Escrow works in M&A, who can help me on this... During M&A transaction, Buyer will acquire 80% of valuation and pay for 50% equity thru Cash + 3 Yr promissory note but remaining 30% of shares will be held in Escrow for next 3 years until promissory note is... Read more »

Jonathan R. Roth answered on May 11, 2017

First, hire a local experienced business attorney to assist you. This is a complex transaction and the terms of the deal need to be detailed closely.

If you are selling shares held by you or the companies treasury shares, then you need an independent escrow of the shares. If the company...
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