Deal Structuring
Escrow Arrangement
A portion of sale proceeds withheld with a neutral escrow agent for a fixed period against potential indemnity claims — a direct reduction in the seller's cash-at-close.
Seller Example
On a ₹35 Cr sale of a Hyderabad IT services firm, the promoter negotiates the escrow down from the buyer's proposed 20% to 12% (₹4.2 Cr) and caps the escrow period at 12 months instead of 24, accelerating release of proceeds the promoter needs to fund a new venture.