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🌍 US & Europe · Exits & dealsEscrow (M&A)
Also called: deal escrow, indemnity escrow
In one line
A portion of acquisition proceeds held back by a neutral third party to cover potential post-deal claims.
In plain English
In an acquisition, a slice of the money is parked in escrow for a period, to be released to sellers only if no issues (like breaches or liabilities) arise. It delays part of your payout.
If you were explaining it to a 5-year-old
When the toy club is sold, some coins are locked in a safe for a while, in case something was wrong with the club — then released if all's well.
Why it matters when you sell
Escrow means part of an exit's proceeds arrive later and aren't fully certain — relevant when weighing an exit against selling today.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.