Holdback Escrow

The Holdback Escrow is the amount of the purchase price set aside and escrowed in an acquisition in order to facilitate recourse for the buyer due to potential breaches of the seller in the deal agreement. The Holdback Escrow can be placed in a third party escrow account to serve as security for the buyer. It is usually expressed as a fixed percentage of the aggregate deal size (i.e. 10%).


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