> ESCROW SOLUTIONS
Escrow Shield Plus
SM
An innovative escrow investment strategy designed for M&A
Problem
New regulations designed to mitigate systemic risks in the financial industry will make traditional investment options for M&A
escrows less attractive on the criteria that parties care most about: principal protection and liquidity whenever required. Banks are
becoming more selective about what deposits they accept, and are offering less attractive terms. Money market funds will become
1) less liquid as redemption limitations reduce availability of funds, and 2) increasingly exposed to risk of loss of principal when they
become subject to potential liquidity fees and are no longer carried at stable net asset value. These factors exacerbate existing
service issues that pose chronic hassles for merger parties.
Solution
Two leaders in their respective fields have created Escrow Shield Plus . SRS Acquiom, an innovator in M&A services, and AXA
Equitable Life Insurance (AXA Equitable), one of the nation’s top insurance companies, have combined to solve for the shortfalls of
the alternatives. Escrow Shield Plus is offered by AXA Equitable, and designed and distributed exclusively by SRS Acquiom.
SM
First Investment Product Designed Specifically for M&A Escrow Accounts
•
Collateralized principal guarantee from highly-rated financial institution.
•
Liquidity on demand when required.
•
Opportunity for higher yields than traditional alternatives.
•
Ease and simplicity in account administration.
•
No fee options on most transactions.
Principal Guarantee
•
Funds are placed in a separate account insulated from
any liabilities arising out of AXA Equitable’s other lines
of business and obligations.
•
AXA Equitable guarantees assets will meet or exceed
liabilities under all Escrow Shield Plus Agreements at
all times.
•
The Escrow Shield Plus Agreement is collateralized by
the assets in the separate account.
•
AXA Equitable’s guarantee to return principal plus
accrued interest is a general obligation and backed
fully by the balance sheet of AXA Equitable.
Liquidity On Demand
•
AXA Equitable provides liquidity on demand to satisfy
indemnification claims and scheduled releases.
Shareholder
Representation
Escrow
Solutions
Payments
Administration
415.367.9400
[email protected] | srsacquiom.com
> ESCROW SOLUTIONS
Escrow Shield Plus
SM
(continued)
Solution (continued)
Opportunity for Higher Yields
•
The portfolio of assets in the separate account is dynamically managed within the liquidity parameters — average
maturity and redemption characteristics — of the underlying escrows. The approach, based on a patented method,
creates the potential for higher yields.
Even Easier with Acquiom Clearinghouse™
•
The whole process is simplified when combined with Acquiom’s online payments administration platform. This
eliminates tedious paperwork and allows shareholders to confirm holdings and submit instructions in minutes.
•
All payments, including those treated as compensation, can be administered with Acquiom.
Comparison to Other Options
Traditional Bank
Traditional Bank
Escrow Shield Plus
Money Market Deposit
Account
Why(MMDA)
Money Market Mutual
Fund (MMF)
Yes - fully insured
collateralized guarantee
of return of principal
Bank credit risk with FDIC
insurance capped at $250K
Uncertain - moving to floating
NAV with possible liqudity fees
and not insured
(relative to other options)
Dynamically Managed
Portfolio
Low and likely to go lower
Low and likely to go lower
Administrative Ease
Excellent
Variable
Variable
Liquidity On Demand
Yes
Yes - but limits in markets
under stress
Currently yes - but subject
to limitations under new
regulations
Principal Protection
Yields
Securities offered through Acquiom Financial LLC, member FINRA/SIPC and an affiliate broker-dealer of SRS Acquiom LLC. Escrow Shield Plus is not available in all states. Acquiom Financial LLC does
not make recommendations, provide investment advice, or determine the suitability of any security for any particular person or entity. Acquiom®, SRS®, and Acquiom Clearinghouse™ are registered
trademarks or trademarks of SRS Acquiom LLC or its affiliates. All other logos, company names or product names are trademarks or registered trademarks of their respective owners.
Escrow Shield PlusSM is issued by AXA Equitable Life Insurance Company.
Shareholder
Representation
Escrow
Solutions
Payments
Administration
415.367.9400
[email protected] | srsacquiom.com