Escrow
SMB M&A term · what is escrow
DefinitionEscrow is a neutral third party that holds the buyer’s funds and the transaction documents until both sides have met the closing conditions, then releases them simultaneously. It removes the riskiest moment in any acquisition — money and ownership changing hands — from a matter of trust between strangers. On ExitToBuy, licensed escrow is part of every transaction, and funds are released only when buyer and seller both confirm.