Simplifying the merger and acquisition escrow process

Not all escrow providers work at the same level of urgency and expertise. If you’re looking for a new provider, transitioning to a more capable team could be easier than you think.

In the world of merger and acquisition financing, you have to strike when the iron is hot.

When a window of opportunity opens and all parties are in agreement, there’s no time to waste. And when the clock is ticking, you need a quick and efficient escrow team – one you can count on to do whatever it takes to meet tight deadlines and preempt delays or complications.

If you’re an M&A attorney not fully satisfied with the way your escrow transactions are being handled, you don’t have to keep working with a less-than-ideal provider. In fact, working with our capable team at U.S. Bank is as simple as five easy steps.

1. Reach out and initiate the process.

We’ve heard from attorneys across the country that flexibility is key when it comes to M&A transactions. An escrow agent must be willing to work within the deal structure that’s required for the transaction. Providers should be available to participate in pre-closing conference calls, as needed, and respond quickly to changing deal logistics. It’s also crucial that an escrow agent employs backup professionals and specialized staff necessary for complex and larger deals (i.e., cash-for-stock escrows and purchase price consideration payments). Attorneys require an escrow agent that acts as a proactive and collaborative business partner in getting transactions closed accurately and as efficiently as possible.
 

2. Understand the necessary KYC requirements.

Know your customer (KYC) rules can present a significant hurdle within the onboarding stage. Given the regulatory environment of the last few years, it takes a certain amount of expertise to meet all necessary compliance requirements. It’s crucial to find a resourceful partner that will engage with parties and their counsel to articulate, collect and process the required information and respond to issues or questions that arise.

At U.S. Bank, we’re here to make KYC more streamlined with end-to-end onboarding services and an efficient, online process to keep your deals moving forward. We coordinate with all internal and external stakeholders when onboarding new escrow accounts, and we offer an online portal where forms can be submitted electronically. We’ll walk you through each step, while providing ongoing support with document gathering and account approval.

3. Complete the escrow agreement.

Whether your transaction is large or small, simple or complex, we’re committed to making your tasks as smooth and streamlined as possible. We provide a wide library of standardized forms and templates you can use to start your escrow agreement – designed to fit nearly every possible need. We’re also willing to work with you to establish a standard agreement that can alleviate extra review time for future transactions.

We also assign a dedicated contact to provide assistance, negotiate the necessary agreements for U.S. Bank and finalize the documents. Once this has been completed, you’re ready to close.
 

4. Coordinate the signatures and closing.

We designed our closing process to be as user-friendly and accommodating as possible. We’re able to accept DocuSign, electronic signatures or emailed scans of traditional signatures. In addition, we can provide our escrow agent signatures to counsel to hold in escrow so they’re immediately available when you need them.

On the day of the deal closing, you’ll receive timely, accurate notifications as to when the funds are received into the escrow account.
 

5.  Oversee the disbursements.

Our specialized product operations team helps accelerate the disbursement process. We offer same-day funding directly from your U.S. Bank escrow account, with expedited funding through incoming wires. Disbursements can be delivered through a variety of channels, including ACH and wire transfers.

Security is also a high priority; we have measures in place to protect your client’s escrow from fraudulent activity.

At U.S. Bank, we offer comprehensive solutions for all your M&A escrow needs. From the unrivaled availability and experience of our specialized team to our continuous investments in technology solutions, we’re here to help your deal close smoothly, securely and on time.

Visit our website to learn more about our escrow services or contact Lars Anderson at lars.anderson@usbank.com.