Wed, Aug 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Tools Of The Trade: Deal Parties Capture Value With New Escrow & Paying Agent Service

Monday, April 29, 2013

By: Bailey McCann, Private Equity Strategies

Maximizing the value of M&A consideration set aside in escrow, often millions of dollars, has historically been an afterthought for parties hustling to get deals done. However, SRS | Shareholder Representative Services, a post-closing expert for private-company mergers and acquisitions, has re-engineered M&A escrow, paying agent and investment services in an effort to streamline the process. SRS partnered with Capital One Bank for the market-wide launch of Acquiom, the company’s answer to M&A escrow services.

"Acquiom is focused on common M&A escrow and paying agent pain points that we’ve seen across more than 400 deals," said Mark Vogel, co-CEO of Shareholder Representative Services, in an interview with Private Equity Strategies.

Acquiom was designed from the ground up with input from hundreds of buyers and sellers to provide simple documentation, fast payments, reduced transaction costs and competitive interest rates on deposits. Through operational efficiencies and simplified forms, merger parties can save tens to hundreds of thousands of dollars per deal in transaction fees, spend less time on documentation of administrative matters, and benefit from streamlined disbursements.

"Shareholders can get paid the same day as the deal closes," Vogel says. Most payments can now go through wire transfer or electronic check rather than the more traditional process of mailing a paper check. "If you have a small shareholder, it doesn’t make sense to go through the whole process of sending a check for $200, especially when you can send a wire transfer."

Operationally, Acquiom will offer a single combined agreement for paying agent and escrow agent services, saving on paperwork. All deposits will go into an FDIC insured money market account. Tax reporting, escheatment compliance and lost shareholder services are also included at no cost.

According to Vogel, SRS partnered with Capital One on the product, which will be offering the service at no cost to its clients. "Capital one got it immediately," he says. "They are a bank focused on innovation, and they thought these services fixed key business challenges."

However, Vogel wants to make Acquiom more than a one off. "We built Acquiom to set a standard for the market." Currently, SRS has relationships with most major banks involved in these types of transactions. He also says they have plans to expand these and other services. "There are still plenty of problems to solve in the market, we plan to invest in solving them."

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing – Hedge funds feasting on Apple again, Top U.S. hedge funds up Walgreen shares; lose some taste for Apple, A look at how some of the top investors, hedge funds spent the second quarter, Blockbuster movies fuel big wins for hedge fund investors, Top hedge funds flock into Allergan amid bid backed by Ackman, Soros Fund Management exits stake in some tech companies, Jana buys FMC stake, adds to AIG, exits Sirius in quarter[more]

    Hedge funds feasting on Apple again From Forbes.com: Robert Citrone and Phillippe Laffont are two of the most prominent Tiger Cubs, hedge fund managers who once worked for legendary money man Julian Robertson’s Tiger Management. Both of them had a rough start to 2014 and sold the bulk of

  2. Legal – Pershing Square sues U.S. over Fannie Mae and Freddie Mac, Elan investors sue SAC over insider-trading losses, Lawsuit loss by hedge fund is just a cost of doing business[more]

    Pershing Square sues U.S. over Fannie Mae and Freddie Mac From WSJ.com: William Ackman's Pershing Square Capital Management LP, which has taken sizable stakes in the common shares of Fannie Mae and Freddie Mac, filed a lawsuit Thursday against the U.S. government challenging its bailout

  3. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  4. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  5. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde