The Importance of Escrow in Acquisitions Protecting Your Assets and Money

When you tell them that money should be released, they'll send you the money. They'll send me the assets. Transaction closed. Without that, you're kind of flying blind, to be honest. Like, if I just send you money, I have this document, but how do I know you've actually physically committed the assets and vice versa? Right. Like, you don't want to just send me the assets without any sort of assurances that I've committed the money in some way?

Yeah. I would say if you are going through an acquisition and you don't use escrow, you are setting yourself up for just unnecessary liability. Because what escrow does essentially is, in my opinion, like James says, it's a vault. But more importantly, it keeps everybody honest.