Professional & B2B Services · Buyer guide
Buying a Title & Escrow Company business
Published · Reviewed by The Diligence Standard Team · Updated
a Title & Escrow Company can look attractive on headline earnings while business-specific operating, compliance, people or transferability risks materially change what a buyer actually owns.
How the business works
Transaction volume, referral-source concentration, underwriter relationships, escrow controls, licensing and real-estate-cycle sensitivity determine value.
Risks to test
- Referral concentration
- Licensing/underwriter approval
- Escrow/control exposure
- Real-estate-cycle sensitivity
- Owner relationship dependence
- E&O claims
Evidence to request and reconcile
- Closing volume/revenue
- Referral-source reports
- Underwriter agreements
- Escrow reconciliations
- Licenses
- E&O/claims/audits
Decision questions
- Which referrals belong to the owner?
- What underwriter approvals transfer?
- How clean are escrow reconciliations?
- What claims/audit exceptions exist?
- How cyclical has volume been?