An asset search, also known as an asset investigation, is simply an investigation into the assets of an individual or a company in order to determine their value. In fact, an asset search is often the best way to determine the total wealth of that company or individual because it takes into account each of their assets and liabilities.
The difficulty of determining your wealth, however, is that assets exist in a wide variety of different forms, and so they can be rather hard to locate. While open assets are incredibly easy to find, hidden assets are not so much.
Since hidden assets are harder to find, an asset search can benefit you because it can help locate those assets for you. Let’s look at some additional reasons for how can asset search can benefit you:
It Can Identify The True Owners Of A Business
Not only can an asset search identify a company’s true owners, it can also locate any silent partners who are funding projects for the company as well. Examples of silent partners include company investors, foreign investors, family members, or hedge fund investors.
It Can Assess Your Wealth Before A Lawsuit
One of the most critical times to determine your total wealth or your company’s wealth will be before an impending lawsuit. Whenever a lawsuit has been filed against a company for services that have gone unpaid, it is extremely wise to locate the assets of that company to determine its total worth.
If the results of the asset search show that the company does not own anything of real value, then it can be hard to collect the unpaid debts. Ultimately, an asset search can help you decide whether it is worth filing a lawsuit or if the lawsuit will be for nothing.
It’s Good Before Hiring A New Employee
Whenever you are considering employees for positions in the upper management of your company, conducting an asset search on them will often be the wise move to do. After all, if you are putting a huge financial responsibility on this potential employee, you want to make sure they are fiscally secure and responsible with their money, right?
An asset search will reveal to you all of the assets of that potential employee as well as any liabilities, including late payments, a default notice, debts, or even past bankruptcies.
It Can Help You Assess The Value Of Another Company
If you are planning on going into a business relationship with another business or company, it’s important for you to fully know the other company’s financial strength. An asset search will report the corporate financial ratios of that company, while also outlining their weaknesses and strengths based on their revenues, payment history, and annual sales.
In fact, entering into a business relationship without conducting an asset search of the other company would be unwise.
Overall, having an asset search performed will be very beneficial to help determine the total wealth of you or your company.