Recovering Debts After a Business Acquisition or Merger
Jul 30, 2025
Mergers and acquisitions are often seen as exciting milestones for companies. They mark a new chapter of growth, opportunity, and consolidation. However, they also come with layers of complexity that are easy to overlook and one of which is the recovery of outstanding debts.
When two businesses come together, unpaid invoices, unresolved contracts, and pre-existing credit arrangements can suddenly become problematic. If not addressed properly, these financial grey areas can lead to disputes, delayed payments, and write-offs. At Payfor, we specialise in helping businesses recover debts that fall into this often-overlooked category.
Why Acquisitions Often Complicate Debt Recovery
During an acquisition, all the assets and liabilities of the acquired company are transferred to the new entity. This may include a long list of outstanding invoices or commercial debts owed by clients, suppliers, or other trading partners. The problem is that debt recovery becomes more difficult when:
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The debtor claims the acquiring company has no standing to collect.
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Contracts and agreements become subject to interpretation or dispute.
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The debtor disputes liability due to a change in ownership or service continuity.
In some cases, debtors deliberately delay or avoid payment, hoping the acquisition creates enough internal disruption that their debt is forgotten. That is why it is essential to have a debt recovery process in place before and immediately after an acquisition.
Real Challenges Faced by Businesses Post-Merger
One UK-based marketing firm that acquired a smaller creative agency found itself facing exactly this issue. Several long-standing clients of the acquired agency had unpaid invoices totalling over £175,000. When contacted for payment, those clients argued they were waiting for "clarity" from the new ownership, while others insisted their contracts were void due to the change in management.
This is where Payfor was brought in. We helped the acquiring firm establish clear legal standing, reviewed the existing service agreements, and worked directly with each debtor to confirm the legitimacy of the debt. Our team handled the communication professionally and persistently, using our 30-day Chase Campaign to re-establish trust and assert authority. Within six weeks, 90% of the outstanding amount had been collected, and the remainder was escalated through our legal network.
Protecting Your Position During Due Diligence
Before completing a merger or acquisition, conducting due diligence is vital — but many firms focus on assets and miss the debt ledger. As part of your legal review, it is wise to identify all ageing receivables and their current status. This can help you decide whether to include certain debts in the transaction or handle them separately with a pre-sale collection agreement.
Adding this level of scrutiny not only protects your investment but makes future collections more straightforward. It also ensures that liabilities do not interfere with your operational cash flow once the deal is finalised.
Why Use a Third-Party Collector After a Merger?
After an acquisition, your finance or legal team may already be stretched thin. Bringing in a specialist commercial debt collection agency like Payfor allows you to:
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Recover money faster without straining internal resources
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Ensure a neutral third party handles delicate communications
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Protect the reputation of your brand under new leadership
Because we are experienced in cross-border disputes and multilingual negotiations, we can act swiftly, even if the debtor is in another country or jurisdiction.
Choose Payfor to Handle the Complex Cases
Payfor understands the challenges of acquiring a company with unresolved debt. Our proven process starts with a 30-day Chase Campaign, involving persistent yet professional contact through daily calls and weekly emails. If payment is still not made, we escalate through our international legal network to pursue what you are owed.
Whether you are preparing to acquire a business or already facing resistance from past clients, our team can help you recover your debts quickly, discreetly, and without disrupting your operations.
Let Payfor take the pressure off. We turn aged receivables into recovered revenue so you can move forward with clarity and confidence. Talk to us today!
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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