When acquiring a company the buyer is generally prepared to take calculated risks, but requires security for the uncertainties revealed in the due diligence survey. Examples of such uncertainties are: incomplete environmental permits, the possibility of leases not being renewed, the departure of important managers, serious financial underperformance within a short period following take over, or any other threats to the success of the company to be acquired. The buyer requires 100% cover for such uncertainties. The best solution is to set up an escrow agreement and retain a certain amount of the purchase price, which is paid into an escrow account at Fortis Escrow. This will provide maximum security for both buyer and seller.

The advisers of both buyer and seller are aware of the benefits of an escrow agreement. They also have the expertise and experience to negotiate the release conditions of the amount in escrow. At this point parties need to choose an escrow agent. Since buyer and seller are looking for maximum security, it is only natural to choose an Escrow Agent affiliated to a bank. Fortis Escrow, part of Fortis Bank, is specialised in providing escrows to maximise payment security for buyer and seller. Fortis Escrow has the experience, the skills and the capacty to act at short notice. Fortis Escrow is frequently required to set up the escrow within 48 hours.

Other solutions
The same principle of escrow security is used to secure performance bonds, bid bonds, advance payments, the safe distribution of funds, multi-party investments and fractional ownership structures.