Administrative Inefficiencies in M&A cost merger parties countless hours and billions of dollars each year. We’re solving this with payments and escrow services that make closing M&A transactions faster and simpler, with better economics. The hidden costs exceed $5 billion.
$4.9B — Slow Payments. Delays in payments cost the M&A industry an aggregate $800M daily.
$100M — Paper. Letters of transmittal, merger documents and stock certificates are printed, copied, and mailed back and forth. This process is costly and error-prone.
$26M — Payment Fees. ACH payments are a fraction of the cost of checks or wires, yet, rarely used.
$340M — Poorly Invested Escrows. The average escrow interest rate is only .03%. Yet, each basis point of additional yield is worth $22.5M annually. There are options.
New services are eliminating these inefficiencies. Our online payments platform means shareholders confirm holdings and submit everything in just a few clicks. It’s fast; 99% of merger consideration is paid within 24 hours after the letter of transmittal is verified. A variety of electronic payment options make the process even more inexpensive and efficient. In addition, SRS Acquiom distributes escrow solutions from top-tier financial institutions that streamline process and offer the potential for higher yields.