Holdback

A Holdback is a portion of the purchase price or proceeds that is withheld at closing to cover post-closing adjustments, indemnity claims, or other contingent liabilities. In M&A, the Holdback is commonly released after a defined period (or upon satisfaction of conditions), and the Holdback amount and release mechanics are heavily negotiated.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.