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Holdback Provision
A clause in an M&A agreement where a portion of the purchase price is held back for a specified period post-closing to cover potential adjustments or claims.
Implications
(Same as Holdback Agreement above) A clause in a contract that allows one party to withhold a portion of payment until specific conditions are fulfilled, often used to mitigate risk and ensure compliance with the terms of the agreement.
Example
Example: In a real estate deal, a holdback provision is included to withhold a portion of the sale price until the seller completes agreed-upon repairs to the property, ensuring that the buyer receives the property in the expected condition.
Related Terms
Same as above.
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