Typically, the escrow process for a buy and sell business transaction involves the following steps:

1. Firstly, Sovereign will perform due diligence on the contracting parties as part of the onboarding process. This will also include identifying the source of funds that are to be used for the transaction.
2. Sovereign will prepare the escrow agreement (which is drafted subject to the terms of the principal agreement).
3. The escrow agreement is then reviewed and agreed by the contracting parties.
4. The buyer deposits money into the escrow account in accordance with the purchase price under the principal agreement.
5. Sovereign confirms receipt of the transaction funds in the escrow account to both contracting parties.
6. If the buyer approves, and subject to the terms and conditions of the escrow agreement being met, the payment event is triggered, and both the buyer and seller will notify Sovereign for the release of the funds.
7. Completion of the transaction takes place and Sovereign releases the escrow funds from the escrow account to the seller in accordance with the terms of the escrow agreement.