Sat, Sep 5, 2015
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. Opalesque Exclusive: New Detroit-based CTA seeks to take advantage of coming volatility[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging manager has just set up his one-man shop in the city of Detroit. Synchronicity Futures,

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  4. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

  5. Launches - BlackRock’s McKenna starts hedge fund with $270m, Ex-BlueBay fund managers Phillips, Fayman to launch hedge fund in 2016, Dallas lawyer, Wall Street-savvy doctor team up to form biotech-focused hedge fund[more]

    BlackRock’s McKenna starts hedge fund with $270m From Bloomberg.com: BlackRock Inc. has started an event-driven hedge fund one year after hiring Harvard Management Co.’s Mark McKenna to run the strategy. Global Event Partners, which seeks to profit from corporate events such as takeovers

banner