M&A paying agent and escrow, native to Israeli law.
An independent third party between the buyer and the sellers. Funds move when closing conditions are met, and only then. Paying agent, escrow, sub-agent and tax holds under one mandate. We know the local tax and regulatory terrain and we run it for you, whether you sit in Tel Aviv or abroad: withholding, ITA approvals, FATCA, regulatory holds. Every seller is paid through PEaX, and everything the deal needs from the parties is collected there too: signatures on the deal documents, KYC, banking details, tax and withholding-exemption forms.
Payments managed for many recipients in one transaction
3 roles in one mandate
Independent provider
Capabilities
One mandate across the whole deal.
Independent third party
Funds move when conditions are met. Not because someone called.
The global escrow market was built on independence: unconflicted agents to ensure execution. We run the same model under Israeli law. A non-bank paying agent with no stake in either side, releasing funds only against documented closing conditions.
A neutral party with no conflicting commercial interest on either side
Releases checked against the signed documents
Independence preserved at every escrow release
One mandate, whole deal
Paying agent, escrow, sub-agent, tax holds. One provider.
Deals leak where providers hand off: on timing, on reporting, on responsibility. With us every role lives in the same house, on the same platform, so one team is accountable from signing to final release.
Paying agent, escrow and sub-agent under one engagement
ITA withholding and regulatory holds managed in the same account
One point of accountability from signing to final release
Built for deal counsel
Your SPA, our paperwork, fast.
Lawyers choose the paying agent, and they choose the one that won’t slow the deal. Our agreements are standard and quick to mark up, comments come back fast, and we work inside the structure you negotiated. We work routinely with leading global law firms and global shareholder-representative services, each working inside PEaX with its own permission level.
Standard agent and escrow agreements, fast to negotiate
Quick turnaround on documents and comments, aligned with your share purchase agreement (SPA)
Global law firms and shareholder representatives get their own PEaX permissions
Israeli tax and regulation, handled
Local tax execution for domestic and foreign clients alike.
This is the part of the deal that global providers often cannot handle, while traditional local providers manage it through slow, manual processes. We are deeply familiar with Israeli tax and regulation, and we take care of it for every party: withholding per each seller’s certificate and residency, ITA approvals and refunds, FATCA and CRS classification, regulatory holds. Foreign buyers and sellers get the same clean execution as locals, in English, through the same portal. PEaX collects what the process needs from each party, from signatures on accession documents to the withholding-exemption forms prepared and submitted by the representative the parties appoint.
Withholding per certificate and residency, for Israeli and foreign sellers
ITA approvals, exemptions and refunds handled in-house
FATCA and CRS classification and reporting handled per participant
How it works
From shared deal to final release.
01
Share the deal.
Send the SPA, cap table and escrow schedule. We confirm the mandate and return comments on the agent agreement fast.
02
Engagement signed.
Engagement letter executed, regulated account opened, all stakeholders notified of the appointment.
03
Closing.
Proceeds received, waterfall run, banking details and tax certificates collected from every seller through PEaX.
04
Distribution and escrow.
Net proceeds paid to every stakeholder. Holdbacks and earn-outs sit in sub-accounts until their conditions are met.
FAQ
Common questions
Direct answers on paying agent and escrow work in Israeli-related M&A.
What does a paying agent do in an Israeli M&A deal?
The paying agent receives the buyer’s funds at closing, runs the waterfall against the signed agreements, withholds Israeli tax per each seller’s certificate, and distributes net proceeds to every shareholder, option holder and stakeholder, with documentation for each payment. In Israeli deals the agent also manages ITA approvals and any regulatory holds.
Why use an independent paying agent?
Because the agent’s only interest must be the conditions. An independent non-bank agent has no lending, advisory or banking relationship with either side. Funds are released only when the documented release conditions are met, and both sides see the same real-time state of the escrow.
How is Israeli tax withholding handled at closing?
Each seller’s withholding rate depends on residency, entity type and ITA certificate. We collect certificates through PEaX before closing, apply the correct rate per seller, remit to the ITA, and manage exemptions and refunds. Foreign sellers are handled the same way, with FATCA and CRS classification included.
Can escrow holdbacks and earn-outs be managed by the same agent?
Yes. Holdbacks, earn-outs and amounts held for tax payments or regulatory holds sit in sub-accounts under the same mandate, released against their documented conditions, with one unbroken audit trail from closing to final release.
Who selects the paying agent?
Usually deal counsel. The practical test is speed: how fast the agent turns the agent agreement, collects seller details and operates the deal. That is the work we have built the firm around.
Along the deal lifecycle
Before, alongside, and after the deal
102 Trustee
Section 102 equity plans, run from first grant to exit, feeding the waterfall.