Corporate mergers and acquisitions. If you’re the buyer, the risks can be significant. Enter M&A holdback escrows: the risk mitigation tool that allows you as the buyer to retrieve funds should problems arise during a purchase.

Now, J.P. Morgan has gathered data from more than 2,600 transactions from over the past three years to produce the 2023 M&A Holdback Escrow Study. From end to end, it offers you an analysis of:

  • Trends and characteristics of M&A holdback escrows
  • Behavioral differences between financial and strategic counterparties
  • Insights into dispute resolution in the holdback escrow market


…due to market uncertainty, escrow continued to be heavily used by companies in need of extensive, flexible and low-cost claim coverage.

Are businesses like yours taking advantage of holdback escrows?

What were the target sectors for M&A? Based on our data, here’s what we discovered:

Infographic describes Target sectors

Explore the claim facts

Covenant breaches. Post-closing purchase price adjustments. Pension underfunding issues. Unpaid taxes. Environmental liabilities. These are just a few of the risks that can be alleviated with escrow claim coverage. And it’s particularly important for you as the buyer seeking to mitigate risk during acquisition.

28%: Deals with at least one claim (indemnity, purchase price adjustment or expense)

Infographic describes Deals with claim (indemnity, adjustment or expense)

69%: Claims received that were resolved in less than six months

84%: Resolved within 12 months - this resolution speed is faster on average than representations and warranties insurance1

Contact our Escrow services professionals today for help with your M&A, debt capital markets financing, litigation and more.

Experience faster, more streamlined engagement, tracking and management of escrow accounts with our Escrow Direct online platform. 



Source: Lowenstein Sandler LLP–R&W Insurance Claims Report 2023

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