The process takes a lot of thought , a lot of planning and a lot of research to ensure you are in compliance with local , state , and federal guidelines .
transfer of ownership occurs , such as creating a holding company scenario . Again , each state is very specific as to how or whether this can occur , such that focus on compliance with your state and / or local rules is a must . When transferring certain assets and equipment , consider when licensing and registration is set to expire , especially for vehicles . Considering when licensing and registration expires for certain assets or equipment may set the pace for how you need to handle the process of licensing and registration changes . The most important thing to remember is that all states have different regulations on re-titling , re-registration , leasing , re-marking vehicles and taxation ; all of which must be considered and planned before moving forward with any merger or acquisition . Failure to follow various state and federal regulations will lead to legal consequences that could result in vehicles sitting idle and result in heavy monetary fines . Both of which will affect your bottom line .
Finally , if you are acquiring employees in the merger or acquisition of a company , you need to know the employees you are taking in , as well as taking on . It is good practice to require the employees to complete an employment application for your named company . You should also vet the employees , to include background and driving checks , to ensure they meet your company ’ s requirements , as well as any DOT regulations . Once you begin employing these persons , your company will be “ on the hook ” for any possible negligence resulting from their actions . By vetting the take-over employees , you can minimalize any sort of negligent , inappropriate hiring or retention claims .
You should also have the take-over employees complete all standard business documents , acknowledgements , and / or agreements that you mandate your own employees execute
upon hire . The take-over employees should also complete any post-hire medical questionnaires or physicals . Walk the take-over employees through your policies and procedures , educating the take-over employees on job expectations and have these employees execute the appropriate handbook or acknowledgment forms . In short , treat these employees as “ new ” employees in implementing your policies and procedures to ensure consistency in your work force . This will eliminate disagreements down the road if all employees have the same expectations at the outset .
In summation , there are a lot of moving parts in deciding to form , merge with or acquire an existing business . The process takes a lot of thought , a lot of planning and a lot of research to ensure you are in compliance with local , state , and federal guidelines . Whenever you are in doubt of the processes , reach out to those who specialize in mergers and acquisitions , lawyers , and tax advisors alike , to help you though this intricate process . CLDA
Cristine K . Huffine is a partner in the law firm of Swift / Currie . She represents employers , professional employment organizations , insurance companies , servicing agents and self-insureds . Her clients include small businesses and Fortune 500 companies alike , including logistics providers , national retailers , restaurants , food and beverage companies , and trucking and , as well as various school board associates and governmental entities . For more information , go to swift / currie . com
summer 2023 I customized logistics & delivery Magazine 29