What is an Escrow Arrangement?
In general, Escrow Arrangements provide an independent service for two or more parties to ensure that a particular transaction will be successfully completed after the fulfillment of certain obligations that one party has made to another. Consequently, if a transaction requires escrow services in order to mitigate financial performance risk, you need a provider who can make the arrangements quickly, correctly, and securely, ensuring your transaction is successfully completed.
Why is an Escrow Arrangement necessary?
An Escrow Arrangement is essential primarily to mitigate the various risks incorporated in every transaction. For example, in the case of investors who share profits generated from a Joint Venture deal or a Merger and Acquisition deal or any other kind of deal, an escrow can help to protect the involved parties from default by any individual investor.
How does an Escrow Arrangement work?
After the establishment of a controlled revenue stream escrow, cash flow from a deal such as royalties, commissions or funds from franchise operations or any other kind of revenue resulting from a business deal, is delivered to the escrow agent, who then distributes the funds to the parties according to the agreed amounts and/or percentages as established in the contract. This type of escrow minimizes the possibility of misuse or misapplication of funds.
How can ConnectedSky assist you?
ConnectedSky can assist its clients by holding cash or any other assets or securities to ensure that the particular objectives and preconditions of a business deal are fully met and complied with. Cash deposits can be held in an escrow trust account, established by ConnectedSky for that particular reason, and which can be tailored according to your needs and requirements, thereby offering you peace of mind knowing that the escrow process is managed by trustworthy professionals in an efficient and cost effectively manner.