2009 Escrow Study from JP Morgan – Escrow Claims are on the Rise

JP Morgan recently completed their 2009 study of escrows associated with M&A transactions. Surveying 445 deals from across the US that closed between January 2007 and June 2008, the study’s results are consistent with both SRS’s experience and Cooley Godward Kronish’s recent observations that post-closing disputes are on the rise. The study shows that claims are made in 40% of all deals where JP Morgan serve as escrow agent. In addition, the larger the deal and escrow, the more likely buyers will assert a claim. The study found that claims increased 10% on escrow deposits of greater than $3 million.

In addition to showing claims experience, the JP Morgan study includes other summary statistics, such as the purpose of claims and typical escrow periods. If you’d like to get a copy of the study, please contact Kalvin Dickson or Michael Balliet of JP Morgan Escrow Services.