Escrow Services used in M&A transactions

During a transaction, it may be necessary to retain and segregate funds in order to complete the deal. In such a case, the fund will be secured in an escrow account held by a third party who will retain those funds in accordance with the provisions of a tripartite agreement and until certain contractual conditions agreed upon for the release of the funds have been fulfilled.

Each transaction requires the escrow agreement to be tailored to the contemplated transaction (such as, namely, the amount of cash to be held, the requirements to be met for the release of the funds, the calendar etc.). The third-party holder acting as Escrow Agent needs to meet certain requirements in terms of skills and independence and is required to answer swiftly to parties' queries. TheEscow Agent should operate independently and impartially to ensure proper execution of the transaction.

Aether Financial Services stands as a leading Escrow Agent, recognized and trusted. Aether provides efficient, tailored and secured solutions. As a financial services expert, Aether benefits from an experienced professional team to assist and guide its clients from the onset of a transaction.

The setting up of an escrow account requires clear and simple documentation which can be quickly adjusted to each case. Efficient management of KYC/AML controls is also paramount.


In addition, Aether is supported by (i) an established partnership with Tier 1 banks; (ii) proprietary system to stay up to date with the required notifications and (iii) experienced and proactive single point of contact during the whole life transaction.

As an international player, Anther Financial Services is active in many countries such as France, Luxembourg, United Kingdom, Benelux, Germany etc.

Based on its experience, Aether Financial Services offers, among other things, the setting up and implementation of escrow accounts designed for Mergers and Acquisitions (M&A).Such escrow account allows, for example, to cover for the seller’s liabilities in respect of the liabilities of the target which occur following the acquisition by segregating a certain amount (usually a certain percentage of the purchase price). The same can apply in anticipation of the purchaser's potential claims regarding inaccurate declarations of the seller.

An Escrow account can also be used in financial transactions, in particular to (i) meet pre-financing requirements, (ii) service drawdowns on long term financings such as construction projects or (iii) hold cash in escrow as collateral for creditors.

The escrow is also an efficient solution to set up a buffer to cover costs related to litigation or to ensure the retention of funds pending court judgment.

Aether Financial Services is also an expert in calculations, middle and back office services and valuations, which are an integral part of the services offered on a daily basis.

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