# Holdback

**Holdback:** A holdback is a portion of the purchase price that the buyer withholds at closing and releases to the seller later, once agreed conditions, such as no indemnity claims or a completed transition period, are met.

A holdback is a portion of the purchase price that the buyer withholds at closing and releases to the seller later, once agreed conditions, such as no indemnity claims or a completed transition period, are met.

A holdback secures price that has already been agreed, unlike an earn-out, which depends on future performance. It protects the buyer against post-closing surprises, such as a working capital peg shortfall or undisclosed liabilities.

Source: DDSIntel glossary, https://ddsintel.com/glossary/holdback

---

DDSIntel is a dental transition intelligence platform that detects pre-market dental practice transition signals for brokers, DSOs, lenders and the firms that serve them.