Escrow Services

Payments with Confidence

An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met.

The most common examples in financial advisory practice sales are the attrition clauses which require that the buyer pay the seller when specific metrics are achieved in a pre-defined time period.


Protection for Both Sides

Having a neutral party handle these transactions benefits both sides.

Advantages to the Buyer

By funding the escrow account, the buyer shows that he/she has the required money. Holding the money in escrow protects the buyer by ensuring that the contractual requirements are fulfilled before funds are released to the seller.

Advantages to the Seller

Because the money has already been paid into escrow, the buyer's ability to pay is not in question. The seller is assured of financing before transferring the ownership of the practice to the buyer.

How the Service Works

We work with both parties through the entire process - from valuation to negotiation to documentation.

Step 1.

Contractual Relationship

Contractual Relationship

All parties agree to the terms of the transaction. One party initiates the escrow account. In cases of SBA loans, the seller generally initiates it.

Step 2.

Payment Verified

Payment Verified

The buyer or bank submits payment to the escrow agent, who verifies it is in good order. Seller is notified that the funds are in escrow. At this time, the seller usually transfers ownership of the practice to the buyer.

Step 3.

Release of Funds

Release of Funds

The escrow agent releases the funds to the seller when the specified terms are met by both parties. This is sometimes done in two or more parts: a down payment and the remaining funds based on a predetermined schedule

What's Included

This service includes the complete administration of the escrow account between the buyer and the seller. Our partner law firm, Kotz Sangster Wysocki, P.C., has extensive experience in the financial services industry and is the escrow agent of record for this service.

This service includes the collection and secure deposit of the funds in the escrow agent's IOLTA account with no interest being paid to either the buyer or the seller. Upon contract fulfillment, the funds will be released to the seller.

In cases where there is a conflict on how much and timing of the release of funds, the escrow agent will deliver the funds to the agreed upon court which has jurisdiction as agreed upon by the buyer and seller in the escrow agreement.

What's the Fee?

The fee for this service is $2,500 plus a percentage of the deposit, which is paid for by the seller upon execution of the escrow agreement. Asset rates and examples of fees are in the chart below.

<$1 MM
$1-2 MM
$2-3 MM
$3+ MM
Example Amount
Asset Fee
Base Fee
Total Fee

How to Begin

Want to learn more about this service?  Complete our quick contact form, and one of our representatives will reach out to you or use our live chat feature below.

Our Advisor Legacy Team

Todd DohertyDirector, M&A Expert
Ph: 509.888.5889
Anthony Whitbeck, CFP®, CLU®M&A Expert
Ph: 248.785.3603
Alan Salomon, CPAM&A Expert
Nicholas Tucker, APMA®M&A Expert
Ph: 248.218.1250
Jeff SternbergAttorney
Ph: 248.646.1056
Victoria WaltonExecutive Assistant
Ph: 248.218.1265
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