There are still M&A Escrow Options after the MMF Reform
by Kylene Casanova
In M&A the corporate treasurer is not always involved at an early stage, but as Alex Tsarnas, in Treasury & RISK, writes, “ one key area in which treasury can plan adequately in advance and from a distance is M&A escrows. Typically relegated to the back burner in the midst of a transaction, escrows have increasingly become a point of focus among treasurers given new regulatory changes and emerging investment options.”
He continues, “But what made sense historically makes less sense today. Regulatory changes implemented in October have made prime money market funds far less suitable for holding escrow in a merger.” He then goes on to review New Options for M&A Escrow.
Read more in the full article, here.
CTMfile take: An important reminder of how you can still use escrows in M&A in the new MMF regulated market.
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