Deal Structuring
Escrow Arrangement
A portion of purchase consideration held with an independent escrow agent for a fixed period to cover potential indemnity claims or warranty breaches.
Buyer Example
On a ₹35 Cr acquisition of a Hyderabad IT services company, the buyer negotiates 15% (₹5.25 Cr) held in escrow for 18 months against undisclosed client contract liabilities and a pending GST assessment — releasable to the seller only net of any successful indemnity claim.