Glossary Index / Holdback (HB)

Holdback (HB)

Holdback is cash kept back in an escrow account, usually for 12 months, in case there are any unaccrued or unanticipated liabilities or expenses that arise post-closing (that should have been taken care of by the seller before closing if they were known). It can also cover the collectability of open accounts receivables or customer retention during that period.

To learn more about seller holdbacks, check out our blog, What Is a Seller Holdback and How Does It Work?