How Escrow Works

Partial Releases and Milestone Escrow: How to Structure Complex Deals

Not every deal is a single payment. Here's how milestone-based escrow works, when to use it, and how to protect both sides in multi-step transactions.

Escrows Click Editorial7 min read209 words
Partial Releases and Milestone Escrow: How to Structure Complex Deals
How Escrow Works · Escrows Click

Some deals can't be completed in a single step. A SaaS acquisition involves code, customers, and domain transfer. A custom development project has design, build, and deployment phases. Milestone escrow breaks one deal into multiple funding and release points, so both sides stay protected throughout.

How milestone escrow works#

  • The total deal value is split into 2–5 milestones with clear deliverables for each.
  • Buyer funds the full amount up front, but releases are gated per milestone.
  • After each milestone delivery, the buyer inspects and approves before that tranche releases.
  • If a milestone fails, the remaining tranches stay locked and the dispute process applies to the failed step only.

When to use milestones#

  • SaaS or business acquisitions with multiple asset types.
  • Freelance projects with distinct phases (design, development, testing).
  • Domain portfolio sales where names transfer one at a time.
  • Bulk account or license sales with delivery in batches.

Escrows Click holds funds in a neutral wallet, verifies delivery, and only releases payment when both parties are satisfied. Start a deal in two minutes at escrows.click.

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Escrows Click Editorial
Written by mediators who handle these deals daily.
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