Ask questions before you buy
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If you decide to take over a limited company which has an Operator's Licence, you will use solicitors and accountants. Those solicitors and accountants will ask numerous questions of the vendor company.
But how many solicitors know what a PG9 is—or its importance? A manufacturing company recently acquired a transport company which had an Operator's Licence for 26 vehicles. No questions were asked in relation to the enforcement history. Two months after the acquisition was complete, the company was called to a Public Inquiry because of a bad record of prohibitions and an adverse fleet inspection. The licence was curtailed by 10 vehicles.
There was nothing that the purchasing company could do because no questions had been asked.
If you are buying a limited company, therefore, make sure your solicitor asks questions like:
• Please list the PG9s issued against the company's vehicles over the past five years.
• H the company ever been called to a Public Inquiry? • Has the company ever been called to an "In-Chambers meeting."?
• Please list all warning letters received from the Traffic Area Office.
• Please list all convictions against the company and any employees over the past five years. If you ask the right questions, you will save yourself a lot of trouble in the future!