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In this helpful resource, we summarize the key facts about the use of M&A escrows. Key statistics are presented from the 2023 M&A Deal Terms Study, and we present post-closing claim activity details from our 2022 M&A Claims Insights Report.
- Has the median and average escrow size as a % of transaction value changed?
- What is the average or median escrow duration (survival period)?
- Are indemnification escrows increasing in frequency?
- How can the presence of reps and warranties insurance affect escrow sizes?
- What are the key facts about post-closing claim activity?
- How many deals with a purchase price adjustment (PPA) mechanism had an adjustment?
- What percentage of deals with a PPA mechanism had a buyer-favorable claim for adjustment?
- What is the average expense fund size for deals with an earnout and without?
- For private M&A, is claims activity increasing or decreasing?
- What percentage of deals had claims totaling at least $1M?
- Which type of indemnity claim comprise nearly 1/3 of all deals?
- What is the median time to resolve a claim?
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Kip Wallen
Senior Director, Thought Leadership tel:720-452-5364
Kip Wallen is a senior director leading the SRS Acquiom thought leadership practice. He leverages his extensive expertise and SRS Acquiom proprietary data to produce resourceful content regularly utilized by market practitioners. Kip has broad experience in M&A and provides guidance on market standards and trends.
Previously, Kip was a Director with the SRS Acquiom Transactional Group, where he collaborated with clients and counsel to negotiate M&A documents including purchase, escrow, payments, and other transactional agreements. Before joining SRS Acquiom, Kip was an attorney with a Denver-based boutique business law firm where he assisted clients with M&A transactions as well as general corporate governance and securities matters.
Kip is an avid supporter of the Colorado Symphony, serving on the Associate Board and Colorado Symphony Fund Board, and the Colorado Rockies. He is an active participant on the American Bar Association’s M&A Committee. In 2016, Kip completed Leadership 20 with the Denver chapter of the Association for Corporate Growth.
Kip received his J.D. from the Sturm College of Law at the University of Denver and an M.S. in Economics, B.S. in Economics and B.A. in International Relations from Lehigh University. He is a member of the Colorado bar.