Holdback

Definitions

1. A portion of purchase price or payment intentionally withheld until certain conditions are met, often to cover post-close claims or performance requirements. Holdbacks are common in acquisitions and complex commercial contracts.

   In plain English: Money temporarily withheld until certain conditions are satisfied.

   Example: "Part of the acquisition proceeds stayed in holdback pending the audit completion."

Related Terms

• Corporate Development
• Deal Room
• Escrow
• Exit Event
• Heads of Terms
• IOI
• Letter of Intent
• LOI
• Billing Platform
• Payment Processing
• Point of Sale
• Secondary Market
• POS Security