[BoxCutter]

Hello everyone. I am wanting to know if I purchased another trucking company that has has CSA scores above the threshold in driver fatigue and equipment maintenance how would that effect me. I am wanting to keep their name as a subsidiary of my company because of some the business aspects in place. I know US DOT will be out to audit them but want to know how that will work if I purchased the business before the audit? Thank you for your answers in advance.

[GMAN]

I am not sure that buying an existing carrier would result in having an audit unless there was an audit already scheduled. If the company that you plan on buying is less than 18 months old, there could be an audit, since all new carriers are supposed to be audited within the first 18 months of operations. If you already own an existing trucking company and will continue to operate the other company as a separate entity, then I don't see that one company would have an effect on the other. It would be two separate companies with common ownership. It will be a little cleaner if both entities were incorporated, but as long as you have two different MC numbers, they should be considered as completely different companies.

[BoxCutter]

Thanks GMAN. The reason of a audit will be because of the driver fatigue is over the CSA threshold and requires intervention from FMCSA. That is my concern. I don"t want to purchase it then they turn around and put them out of business. I had them come out to me because of I had some O/Ops leased on who got log violations but did not say anything to me. I found out later though. I appreciate your answer. I used to be on here before but cant remember my old login. Used the handle of collardgreens.

[chris1]

If you purchase the MC# the CSA scores go with it along with any fines from a compliance review audit. Also any claims belonging to that #. That could all be covered in a purchase agreement as long as the seller actually backs it up. Much cleaner to get a new MC# and change the name slightly and just buy the inventory.

[BoxCutter]

Thanks Chris1. That is what I was needing to know.

[GMAN]

Originally Posted by BoxCutter

Thanks GMAN. The reason of a audit will be because of the driver fatigue is over the CSA threshold and requires intervention from FMCSA. That is my concern. I don"t want to purchase it then they turn around and put them out of business. I had them come out to me because of I had some O/Ops leased on who got log violations but did not say anything to me. I found out later though. I appreciate your answer. I used to be on here before but cant remember my old login. Used the handle of collardgreens.

I remember your old handle. It sounds like you may be getting more problems than benefits by buying the other MC number.