Tue, May 23, 2017
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 - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  2. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  3. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  4. J.P. Morgan Asset Management launches ultra-short income ETF[more]

    Komfie Manalo, Opalesque Asia: J.P. Morgan Asset Management, the $1.5tln investment management arm of JPMorgan Chase & Co., has launched the JPMorgan Ultra-Short Income ETF (JPST), an actively managed ETF that seeks to provide current incom

  5. News Briefs - A former hedge fund manager is running a free masters program in financial engineering, Trinity Fund Administration Ltd joining the Mainstream BPO Group, Chelsea Clinton's husband joins Silicon Valley's Social Capital, The quants run Wall Street now[more]

    A former hedge fund manager is running a free masters program in financial engineering A former hedge funder is offering a free masters degree in a field that's integral to Wall Street's future. Igor Tulchinsky, a former managing director at Millennium Partners, a New York-based hedge fu