Escrow is an arrangement in which money or documents are held by a neutral third party until agreed transaction conditions are satisfied.

What Does Escrow Mean?

An arrangement in which money or documents are held by a neutral third party until agreed transaction conditions are satisfied.

Why Is Escrow Important When Selling an Online Business?

This term can affect how buyers evaluate risk, value, transferability, payment structure, or the practical completion of an online business acquisition. Founders should understand it before entering negotiations or signing transaction documents.

Related Terms

• Closing
• Cash at Closing
• Holdback
• Purchase Agreement
• Closing Conditions

Next step: Explore the related glossary terms above or request a confidential online business valuation from Company-Seller.