Transportation Brief: Mergers & Acquisitions - Deal Failures in Hot Trucking Market
August 8, 2019
Mergers & Acquisitions - Deal Failures in Hot Trucking Market
Over the past five years or so, private equity firms and a steady stream of strategic buyers in the trucking market have taken a renewed and active interest in acquiring transportation businesses. Despite an active market, in part due to greater availability of loans and underwriting insurance, deal failures have occurred with greater frequency. In large part, the failures pivot on technical legal issues involved in transportation-related transactions. Such issues include permits, authorities, and licensing problems often in highly sensitive areas involving hazmat, TSA, and federal maritime commission regulations. A fundamental misunderstanding of independent contractor documentation and operational practices also lead to problems. In addition, the asset-light logistics laws (where penalties have been added to inspire greater enforcement) have given insurers significant pause, while also discouraging sellers who are called upon to place greater sums in escrow. A number of these issues can be discovered and resolved via a mock due diligence audit. With some foresight by current owners as to the future sale of the transportation business, a mock audit might benefit both buyers and sellers—long before a deal is being discussed.
Scopelitis’ Transportation Brief® is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
Transportation Brief: Canada’s Final ELD Rule
by Jerad T. Childress , Brandon K. WisemanWhile there is significant overlap between Canada's recently-published final ELD rule and the U.S. ELD rule, there are notable differences of which cross-border motor carriers should be aware.
Transportation Brief: Spotlight on Taxation Practice - Federal Employment Tax IC Classification Portfolio
Kelli M. Block , Steven A. Pletcher , Rebecca S. TrennerFederal employment tax audits remain an active battlefront for transportation companies that engage independent contractors. The ripple effects of such audits may be significant, particularly given the IRS’s information-sharing initiative with the U.S. DOL and state unemployment tax agencies.
Transportation Brief: For the Record - New Hires at Scopelitis
Jared KramerHiring news from Scopelitis.
Transportation Brief: Dispatches
by Kelli M. Block , Jerad T. Childress , Jeffrey S. Jackson , Prasad SharmaTransportation Industry News & Trends
Transportation Brief: Dynamex Weeds are Growing in the Garden State
by Kelli M. Block , Gregory M. FearySupposed public policy concerns akin to those expressed by the Dynamex court have recently popped-up in New Jersey (another ABC Test state), thereby increasing the Garden State’s allure to adversaries as fertile ground for a misclassification battlefront.
- On the Road
Scopelitis attorneys are often invited to participate in meetings with transportation industry leaders. Learn more about their trips this quarter.