Escrow for startup acquisitions
How escrow works for small startup and SaaS acquisitions in 2026 — providers, fees, timelines, and standard hold-back terms.
- Escrow.com and Payoneer Escrow cover 90% of sub-$1M SaaS deals.
- Standard hold-back: 10–20% of purchase price for 3–6 months.
- Escrow fees are 0.89%–3.25% of transaction value.
The three-step flow
1. Buyer wires funds to escrow agent. 2. Seller transfers assets (code repo, domain, Stripe). 3. Buyer confirms and funds release, minus any agreed hold-back.
Common hold-back terms
10% for 3 months for asset purchases. 15–20% for 6 months for share purchases. Released automatically unless a claim is filed with evidence.
FAQs
Split 50/50 is standard. If one side insists, negotiate it into the price.
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