Are you considering the unclaimed property liabilities in your Acquisitions? You should be because it could make a difference in what the acquisitions may cost you.
Depending on whether the Acquisition is a Stock purchase or an Asset purchase will dictate what your liability may be.
If the acquisition is a stock or equity purchase, the acquirer generally assumes historical and ongoing liability of the acquisition target.
In an Asset purchase, the acquirer generally will inherent unclaimed property liability ONLY related to the assets & liabilities assumed in the purchase transaction.
So, as you can see, a stock/equity acquisition includes any historical unclaimed property historical filings that have been missed over the years.
Therefore the acquirer would need to submit past due reports and also be responsible for any fines & interest penalties the States will/could assess would could add up.
This is why PEACC recommends performing an unclaimed property exercise to estimate what the exposure could be. Then lower the offering price taking the estimated unclaimed property exposure into consideration.
For further information on complying with the myriad of all the various State laws and regulations, please reach out to a professional at PEACC.com by calling 410.303.5510 or email at info@peacc.com too gain valuable knowledge & insight on unclaimed property compliance
Call PEACC for Compliance 410.303.5510
Unclaimed Property Liabilities in Acquisitions September 4th, 2025peaccadmin
