Many business acquisition agreements such as a stock purchase agreement or asset purchase agreement have language and clauses regarding an indemnification holdback. This indemnification holdback is when a portion of the purchase price is not paid at the closing of the transaction but rather goes into an escrow account to be delivered to the parties pursuant to the escrow agreement. The holdback primarily protects the buyer by having funds held with a disinterested third-party to protect against the seller’s breach of representations, warranties, covenants and other terms of the agreement. If you have any questions regarding your purchase agreement or other business contacts, you can speak with a business attorney by contacting The McGuire Law Firm.
Schedule a free consultation with a business attorney.
What is an Indemnification Holdback? How do I Escrow Funds for Indemnification? Escrowing Funds in a Merger or Acquisitions. Escrowing Funds in Money to Protect Buyer. Can I Buyer Require Funds to Be Held Back for Indemnification? How Do I Protect Myself as a Buyer in a Business Acquisition? Denver Business Attorney, Denver Merger and Acquisition Attorney, Denver Business Lawyer, Denver Small Business Attorney.