I'm reviewing the Purchase & Sale Agreement for a childcare acquisition in Florida and want to make sure I'm interpreting the escrow provisions correctly. The agreement provides for: A 15-day due diligence period. An initial $30,000 escrow deposit due upon signing. A clause stating that if I cancel for any reason during the due diligence period, the escrow funds are to be immediately returned to me. An additional $30,000 deposit due 3 days after the due diligence period if I move forward. My questions are: Is it typical to put an initial deposit before doing ANY due diligence whatsoever? Is that structure typical for lower middle-market/search fund acquisitions? Have any of you negotiated the initial deposit to be funded after due diligence instead? I'd really appreciate hearing what you've seen in your own transactions. Thanks in advance!