Q I have the opportunity to buy a small X haulage
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business and I am trying to assess whether the price being asked for it, is reasonable. Could you please tell me what sum I should take into consideration for the purchase of the operator's licence?
A it is not possible to put a price on the operator's licence of the business you intend to buy because the licence is not transferable.
Section 86 of the Transport Act 1968 states that ... "an operator's licence ... shall not be capable of being transferred or assigned, but provision may be made by regulations for treating a person carrying on the trade or business of the holder of an operator's licence . . . as if he were the holder thereof. . in the event of the death, incapacity, bankruptcy or liquidation of the holder or of the appointment of a receiver or manager in relation to the trade or business."
Though none of the purposes specified applies to the acquisition of a business by someone not the holder of an 0 licence, it is clear that it is the intention that the licence be not transferable.
Section 66(1a) of the 1968 Act states that "a Licencing Authority in granting an operator's licence may attach thereto such conditions as he sees fit for requiring the holder to inform him of any change . . . in
the organization, management or ownership of the, trade or business in the course of which the authorized vehicles are used."
If you buy the business, therefore, the change of ownership must be notified to the Licensing Authority who issued the licence. He will wish to satisfy himself as to your fitness to run it before he issues a licence in your name.