The Hidden Pitfalls of UP in M&A deals : Unclaimed Property News and Discussion Blog
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The Hidden Pitfalls of UP in M&A deals

by Tracey Reid on 09/13/11

I came across a GREAT article today on the hidden and often unforeseen pitfalls of Unclaimed Property in Mergers & Acquisitions.  Click on the link above if you are interested. I highly recommend that you read it!  It talks about all of the potential risks associated with unclaimed property when you are merging with or acquiring another company, including transfer of liability for unclaimed property, issues with re-incorporation or changing the state of incorporation, record availability and shareholder issues.  This is great information to have in advance if you are in an acquisition mode.  BUT, WHAT DO YOU DO IF YOU ALREADY BOUGHT AN UNCLAIMED PROPERTY PROBLEM?  Some of the information in the article will help, but if you are in compliance and have been filing for years, your options for dealing with the past due property of an acquired company can be limited, since many states limit Voluntary Disclosure Agreements to first-time filers!  You can still bring the old property to the attention of the states, and often get penalty and interest waived, even if your existing company has a filing history.  It just takes a little more effort and negotiation!  I am working on a couple of unclaimed property acquisition non-compliance issues right now.  If you need some help of your own, drop us a line and I will share my experiences!  In the meantime, get busy with your due diligence!  There are only 45 days until those Fall Reports need to be mailed!

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