No one who runs a business expects to lose track of their company's assets. They may believe it is something that only happens when people are careless, and that due diligence can protect against losing track of assets. And yet, billions of dollars in lost and unclaimed assets are sitting in state trust funds right now, waiting for their rightful owners to claim them. Under what circumstances should businesses be checking to see if they are in need of asset recovery services?
1. After a Merger or Acquisition
Mergers and acquisitions are excellent ways for companies to expand their markets and improve their business operations, but they are also often messy processes. It can be surprisingly easy for people to lose track of assets while the companies are going through a merger or acquisition, especially as they restructure themselves to accommodate their new business needs.
Ideally, all of a purchased company's assets become the property of its new owner. A shocking amount of the time, though, valuable assets are left behind, with some companies leaving thousands or even millions of dollars on the table without realizing it. Once the merger or acquisition has finished, it can be wise to seek asset recovery services simply to figure out what may have been misplaced in the chaos.
2. After Closing or Relocating an Office
The single most common reason that companies wind up needing asset recovery teams is that they lose money that is delivered to an office that has long since been closed. When a check gets sent to a closed office, it often winds up in an unclaimed property fund, which is run by the state. Unfortunately, states rarely inform people that they have assets in an unclaimed property fund.
3. After a Bankruptcy, Yours or a Customer's
Bankruptcy is an important tool for people and businesses suffering with extreme financial distress, but it is also a bureaucratic nightmare. While a bankruptcy is ongoing, it is nearly impossible to get money or property from the person who declared bankruptcy. Given that bankruptcies typically take years to resolve, you may not even remember you were owed something by the time you can seek any payments they owe you.
4. After Substantial Litigation
Lawsuits are never pleasant to get involved with, but even after resolving the lawsuit itself, you may still find yourself with issues later on. Lawsuits often create bureaucratic nightmares that hold up money and asset transfers, which can get lost in the shuffle as litigation is ongoing.
Lawsuits can go on for years, with payments on claims potentially not going out until long after the lawsuit is finished. The sheer amount of time involved means that claims might be paid out to old addresses, old businesses, or to a registered agent your company no longer uses, causing them to get lost. That is why it can be a good idea to get asset recovery services after your lawsuit, just to make sure nothing got lost in the mess of paperwork.
5. After Significant Staff Turnover
Sometimes, it is not bureaucracy that causes the loss of valuable assets, but simple human error. Often, an employee will receive a check or other record relating to a company's assets, and not knowing what to do with it, they will stash it away for safekeeping where only they can find it. Then they leave the company, and that asset gets lost without ever being appropriately delivered. Until you contact asset recovery services to retrieve them, those misplaced assets may as well have fallen down a hole.
6. After a Name Change or Restructuring
Another common issue that comes up is when a company changes its name, perhaps due to a rebranding effort or a business restructuring. When this happens, bank accounts and other assets under that old name might not get included as part of the overall calculation in a merger or acquisition. Asset recovery lawyers can go through old records to find accounts under these defunct names and ensure they get where they belong.
7. When Records Have Been Lost or Destroyed
Sometimes the problem is simply that old records are lost or destroyed in the shuffle of a merger or acquisition. This can be especially true if your company is old enough to have some transactions only recorded on paper, when a lost box or file folder can mean entire accounts are simply never transferred over. Add in the potential of records being damaged due to fires, floods, or other disasters, and you can easily lose thousands of dollars without ever knowing they were gone.
8. If It Has Been a Long Time Since You Checked
Finally, it is possible that you could lose assets as a result of the simple course of business. If you have been in business for a while and you have yet to check to see if you have lost or misplaced assets, now might be a good time to search, just to be sure. That way, if you do find any unclaimed assets in your name, you can seek asset recovery services to ensure you receive everything you are owed.
When was the last time you checked?
The sooner you call, the sooner we can begin recovering what belongs to your business. Call our Cooperstown office at 607-547-1195 or visit our contact page to get started.
