Holdback is a portion of the purchase price retained temporarily after closing to cover agreed claims, adjustments, or obligations.

What Does Holdback Mean?

A portion of the purchase price retained temporarily after closing to cover agreed claims, adjustments, or obligations.

Why Is Holdback 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

• Escrow
• Cash at Closing
• Representations and Warranties
• Purchase Agreement
• Closing

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