Background

A U.S. subsidiary of a large foreign industrial equipment manufacturer with annual revenues of $10 billion, entered into a plan of merger with a domestic equipment supplier to the automotive and heavy machinery industry.

Together, the parties arranged three agreements that incorporated four distinct escrow accounts. Funds, earmarked for specific purposes, needed to be segregated in separate accounts. The escrow accounts were designated for general indemnification, purchase price adjustments, potential environmental remediation in connection with the land transfer, and general expenses to cover certain costs associated with the merger. The environmental and general expense escrow accounts involved at least seven parties in the escrow agreements making them especially complex.

BNY Mellon Escrow Solution

An attorney at a prominent, global law firm representing the U.S. subsidiary referred the transaction to BNY Mellon Wealth Management’s escrow services group. The team had just three days to establish the four escrow accounts, which had a combined value of $15.5 million.

With an influx of compliance documents and legal information, the escrow team collaborated with both parties’ legal counsel to streamline the volume of documents. As a result of the escrow team’s expertise with a variety of escrow agreements and quick turnaround, three legal agreements — the Plan of Merger agreement, the Environmental agreement and the Expense agreement — were finalized between the parties and the bank in a matter of days.

Client Advantages

In a matter of days, the BNY Mellon Wealth Management escrow team was able to establish four multi-million-dollar escrow accounts. In doing so, we were able to demonstrate our expertise with complex agreements, as well as our attentiveness to deadlines, which is critical to clients with a specific closing date.

Additionally, the client was impressed with BNY Mellon’s strong credit ratings underscoring our financial safety and stability. Thus, the client enjoyed peace of mind and exceptional satisfaction in placing the escrow funds in our deposit accounts.

BNY Mellon Wealth Management’s escrow services offer reliability, value and convenience. We are committed to providing you and your clients with the prompt service and turnaround we know are so critical to your success.

Why BNY Mellon Wealth Management

• Experience with various forms of escrow agreements

        o Settlements from class actions, divorce and other court-ordered             proceedings

        o Corporate mergers and acquisitions

        o Qualified 1031 like-kind escrow accounts

• Personal service and expertise

        o Escrow specialists liaison between parties to expedite the creation of the             agreement

        o Each specialist acts as single point of contact to manage the agreement on an             ongoing basis

• Quick turnaround of agreements

• Proactive participation throughout the lifecycle of the agreement

        o Escrow agreement review and account setup

        o Account maintenance and recordkeeping

        o Tax reporting

        o Distribution and release of assets

        o Final closing

• Customized deposit capabilities

        o Designed to meet the needs of law firms and individual attorneys acting as             escrow agent

• Financial strength and stability

        o BNY Mellon is consistently ranked among the top financial firms with strong             external credit ratings¹

BNY Mellon Wealth Management works directly with attorneys and other advisors, delivering expert escrow capabilities to clients. Acting as liaison between parties, our specialists act as a single point of contact throughout the execution of the agreement. We provide reliability, cost efficiency and expedience, with a commitment to exceptional service, to ensure our clients are well served, well prepared and well protected. 

Escrow services are available nationwide through our network of local offices. Visit our Escrow Services page for more information on BNY Mellon Wealth Management's escrow capabilities. 

Footnotes: 

¹For credit rating information on BNY Mellon, N.A., visit investor relations page.