Blog

25 March, 2025

The role of escrow services in securing business transactions

Felix Edgren, Country Head (Sweden), and Madeleine Grobler, Capital Markets Sales (Sweden)

Businesses and investors need secure, efficient solutions to handle complex transactions. Whether it’s in mergers and acquisitions, real estate deals, or project financing, escrow services play a crucial role in reducing risk and ensuring everything goes smoothly. As an independent, trusted third party, our escrow service helps ensure seamless execution across a wide range of business deals, asset procurement projects, and disputes in litigation and arbitration.

What is an escrow service?

An escrow service provides a neutral platform where funds or assets are securely held in a segregated account until the agreed-upon conditions are met. This structure is widely used in financial transactions to ensure that neither party is exposed to unnecessary risk.

The process generally follows these steps:

  1. Agreement on terms: Both parties involved in the transaction agree to the escrow terms, including conditions for fund release
  2. Deposit of funds or assets: The buyer or investor deposits the agreed funds or assets into an escrow account
  3. Verification and due diligence: The escrow agent conducts due diligence, verifying compliance with contractual requirements
  4. Execution of terms: Once conditions are met, such as asset delivery or service completion, funds or assets are released to the designated recipient
Key applications of escrow services

Escrow arrangements can be tailored to a broad range of business needs, ensuring the secure execution of high-value transactions across industries. Some common use cases include:

Key Application Description
Mergers and acquisitions (M&A) Escrow accounts hold purchase funds or indemnity reserves until post-closing conditions are met, minimising financial risk for both buyers and sellers.
Project finance Escrow solutions safeguard capital-intensive projects, ensuring funds are disbursed only upon meeting project milestones.
Litigation settlement funds In legal disputes, escrow accounts hold settlement funds securely until resolution terms are finalised, protecting all parties involved.
Real estate and construction Escrow accounts hold purchase deposits in real estate transactions and secure contractor payments in construction projects, releasing funds upon completion of contractual obligations.
Pension scheme funding Escrow services support pension fund contributions, ensuring payments are structured, secure, and comply with regulatory requirements.
Capital raising and joint ventures Escrow accounts hold investor funds in capital-raising initiatives, ensuring compliance with fundraising conditions before fund release.
International trade finance and supply chain protection Escrow mitigates risks in international trade and supply chain financing, ensuring payments are made only after goods or services are delivered.

How can we help?

We offer escrow services as part of a fully integrated financial solution, ensuring businesses have the security and efficiency needed to manage transactions with confidence. As a trusted escrow partner we ensure smooth deal execution, help mitigating financial and operational risks, thereby allowing our clients to focus on growth and innovation.

As an independent third party, we support cross-border transactions across multiple legal frameworks. Our in-country specialists operate in key jurisdictions ensuring seamless compliance and execution.

Whether securing funds for an M&A deal, safeguarding litigation settlements, or facilitating project financing, our escrow services provide a structured, reliable framework for successful outcomes.

Our escrow solutions support a wide range of business transactions, ensuring seamless execution for our clients. Beyond domestic cash transactions, we also facilitate cross-border deals, leveraging our deep expertise in escrow services.

Key advantages of our escrow solutions:
    • Flexible agreements: Standard or tailored escrow arrangements to your needs
    • Global coverage: Escrow accounts available in all major currencies and asset types
    • Secure and segregated accounts: Ensuring transparency and regulatory compliance
    • Dedicated client support: A single point of contact throughout the transaction process
    • Worldwide support: Tailored escrow solutions for businesses at any stage of their lifecycle
    • Entrepreneurial approach: A commitment to continuous innovation to meet evolving client needs
    • Sustainability focus: Driving positive change alongside exceptional client service

For more information or to discuss your specific requirements, please contact Madeleine Grobler and Felix Edgren.

Contact the team

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