In financial transaction specially in Merger & Acquisitions, sellers are often concerned about assurance for receiving the payment, whereas the buyer is concerned about their investment.
Have you ever thought how this problem is tackled. Let's dive right into the topic. This problem is solved using Escrow account.
The Escrow account is a 3rd party who holds assets or money behalf of two parties that are in the process of completing a transaction. They continue to hold the funds until both parties have fulfilled their contractual requirements.