it was only profitable because it incorrectly took unclaimed property into income.
• Have all available bank statements/ reconciliations and all electronic accounts receivable aging reports been provided vs. just the most recent years? Divesting? Understanding your unclaimed property exposure during a divestiture is equally important, especially when determining whether you or the buyer will be responsible for any historical unclaimed property liability. Thoroughly evaluating the unclaimed property risk attached to potential M&A activity is essential to avoid unwanted liability surprises after a deal closes. Companies considering M&A deals can help ensure they understand how unclaimed property affects such transactions by including knowledgeable unclaimed property professionals as part of the M&A due diligence team. This article is reprinted with the permission of the Unclaimed Property Professionals Organization (UPPO). UPPO cordially invites oil and gas professionals who deal with audits, compliance, or VDAs or who are focused on escheat matters to attend the UPPO Annual Conference in San Antonio, TX on March 15-18, 2026. For further information, contact UPPO@uppo.org.
Questions that should be asked during due diligence The due diligence checklist of any target should always address unclaimed property and should include the following: • Does the Target have an unclaimed property filing history, and if so, for how long? • Has the target ever been under an unclaimed property audit or entered into voluntary disclosure agreements with any jurisdictions? • Does the target use third-party administrators to administer programs such as payroll, benefits, rebates or shareholder services? • Does the target have internal policies specific to unclaimed property or specific policies for handling outstanding checks and aged credit balances? • Does the target have a history of voiding/ writing off aged checks and/or credit balances, or has it maintained a tolerance write-off policy?
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