WASHINGTON--(BUSINESS WIRE)--Maximizing the value of M&A consideration set aside in escrow, often millions of dollars, has historically been an afterthought for parties hustling to get deals done. SRS | Shareholder Representative Services, the post-closing expert for private-company mergers and acquisitions, today announced the market-wide launch of Acquiom, a re-engineered M&A escrow, paying agent and investment service.
“Smart escrow and paying agent services allow for timely receipt of proceeds, eliminate legal and administrative headaches, offer higher interest rates and reduce transaction costs that impact the bottom line. Acquiom is focused on meeting these needs,” said Tony Di Bona, CFO and General Partner at Alloy Ventures.
Acquiom was designed from the ground up with input from hundreds of buyers and sellers to provide simple documentation, fast payments, reduced transaction costs and competitive interest rates on deposits. Through operational efficiencies and simplified forms, merger parties can save tens to hundreds of thousands of dollars per deal in transaction fees, spend less time on documentation of administrative matters, and benefit from streamlined disbursements.
“Transactional inefficiencies almost always mean that money is being left on the table,” said Fred Hutchison, Partner at Hutchison PLLC. “Clients are looking for innovative ways to close deals more efficiently without sacrificing the quality of the agreements. Acquiom is a welcome innovation for the M&A market.”
Key Acquiom benefits include:
- Single combined agreement for paying agent and escrow agent services that reduces the amount of paperwork and negotiation required for each transaction.
- Deposits are held in an FDIC insured Money Market Account offering competitive interest rates.
- All escrow releases are made pursuant to joint instructions, simplifying the release process instead of relying on complex release mechanics in the escrow agreement.
- Disbursements are made in three business days or less. Most payments are made via wire transfer or electronic check, eliminating unnecessary costs and delays associated with mailing physical checks.
- Tax reporting, escheatment compliance and lost shareholder services are included at no cost.
- Interest earned on escrow funds is reported as income earned only upon final distribution, eliminating the need for periodic releases from the escrow fund to cover tax liability on accrued interest.
“Acquiom is focused on common M&A escrow and paying agent pain points that we’ve seen across more than 400 deals,” said Mark Vogel, co-CEO of Shareholder Representative Services. “We asked how we could make the escrow experience better, and Acquiom is the result.”
SRS works with an independent bank to provide the banking services included with Acquiom. More information on Acquiom and other SRS services is available on the SRS website, www.shareholderrep.com/acquiom.
SRS | Shareholder Representative Services is the global expert in professionally managing the post-closing process to safeguard the selling shareholders' interests in private company M&A transactions. As the shareholder representative, SRS manages all post-closing matters, including working capital and other purchase price adjustments, tax reviews, earn-outs, the handling of claims, disputes and litigation, communications with acquirers and selling shareholders, and management and distribution of escrow and expense funds.
SRS has a senior-level team of more than 40 attorneys, financial professionals, and operations and systems experts and the most sophisticated operational, tracking and reporting systems ever used by a shareholder representative. On deals comprising $50+ billion in aggregate deal value, SRS has represented more than 400 venture capital and private equity firms and over 40,000 shareholders in 44 countries. No one has as much knowledge and experience in serving as a shareholder representative and navigating the issues that arise post-closing as SRS. For more information visit www.shareholderrep.com.