A guide to closing safely with Escrow.com
Last updated: July 12th, 2023
Selling your business to someone you met on the internet can be a bit unsettling.
We verify IDs, funds, and take other measures to minimize foul play and ensure everyone follows the rules of the marketplace.
But to protect your acquisition, and to prevent any dispute with a buyer you've come to trust, we strongly recommend closing with escrow.
The steps below explain how to close securely, for free, with our escrow service partner, Escrow.com.
Review and accept the buyer's escrow details
Once you and the buyer have signed an APA, your buyer will then send you escrow details to accept before you move to Escrow.com to create your transaction.
1. Click View escrow details
2. Click Next.
3. Enter the email address you'll use with Escrow.com. It will default to your Acquire.com email address, but if you have an existing Escrow.com account, you can use it instead.
4. Review the escrow details to ensure you're happy with them. Then click Accept.
If you spot an error or want to renegotiate the escrow details, click Reject and then add a message on the next screen explaining why. The buyer can then revise the details and re-send them to you for approval.
5. Once you accept the escrow details, escrow begins.
Agree to terms on Escrow.com
The Escrow.com screens and process below might vary if Escrow.com later updates its user interface. If you're unsure, please email firstname.lastname@example.org.
6. Click Agree to escrow terms to move to Escrow.com to create your acquisition transaction.
7. Click Agree on your Escrow.com dashboard.
8. Select how you'd like to receive settlement.
Verify your details on Escrow.com
9. You also need to verify your details on Escrow.com. Skip to step 10 if you're still on the Escrow.com website, otherwise click Verify your details from your acquisition dashboard.
10. Verify your Escrow.com account by entering your ID details.
Please ensure your Escrow.com account type matches how you signed the APA (individual or company). Otherwise, you may need to cancel your existing APA and re-sign it to ensure you pass this critical verification step on Escrow.com.
After verifying your account, you'll then be able to agree to escrow terms, moving your acquisition forwards.
Now return to Acquire.com.
Wait for Escrow.com to verify the buyer's funds
11. Please wait while the buyer sends their acquisition funds to Escrow.com for verification.
Transfer your assets
12. We'll email you and update your acquisition status when to transfer your assets. Once you've transferred your assets, click Mark assets as sent.
Please never transfer acquisition assets until Escrow.com verifies the buyer's funds.
13. Your agreed escrow details will have included an inspection period (usually a day or two) for the buyer to review and approve your assets. Escrow.com releases your closing payment immediately after the buyer approves your assets.
14. If your acquisition was all-cash or all-cash plus seller financing, your transaction closes once you receive the closing payment. You just got Acquire'd! 🎉
Click Mark as Acquire'd to complete your acquisition on Acquire.com.
Your Acquire.com closing fee is deducted automatically from the buyer's closing payment from Escrow.com – no need to transfer anything to us separately.
How to request post-closing or conditional payments
Did you agree to a seller holdback, earnout, or some other conditional payment post-closing? Once you meet the condition for payment, request it through your acquisition dashboard and Escrow.com will release it once the buyer approves your request.
What happens if the buyer rejects your assets?
Buyers can reject your assets or requests for post-closing payments during the agreed inspection period. If this happens, we recommend speaking to the buyer to resolve the problem to both of your satisfaction. Talking can resolve most issues.
However, email Escrow.com support if you need help to resolve the issue.
What if you use your own escrow agent?
You're welcome to use your own escrow agent, though we recommend Escrow.com since they're global experts and we cover your escrow fee.
Step 3 will change to show the escrow agent your buyer has chosen. We email this agent a copy of your APA to speed up the escrow process.
You can also ignore steps 5-13 since we have no part in the escrow process. However, please mark your startup as Acquire'd once your escrow process ends.
Still need help?
Please search the help center again or contact us at email@example.com.