Holdbacks

1 2 3 4 5 A B C D E F G H I K L M N O P Q R S T V W
He Ho

Holdbacks

A portion of the purchase price in an acquisition that is withheld by the acquiring company. These funds are held to cover potential or known expenses, liabilities, or legal contingencies that may arise post-acquisition. The acquiring company typically sets a defined period for these issues to be resolved, after which the remaining holdback funds are released to the owners/shareholders of the acquired company.

Submit a Comment on this Definition

Please share your expertise to help enhance the accuracy of this definition.

Your email address will not be published. Required fields are marked *

Dictionary Categories
  • No categories