Targeted Solutions that Help You Focus on Your Vision
The incumbent automotive retailers (OEMs and Dealerships) have been slow to adopt new technologies. However, the dealership technology industry has continuously operated ahead of the curve, setting the standards of tomorrow by implementing innovative ideas founders have today. Faced with the emergence of new technologies, changing markets, rapidly increasing regulatory oversight, convergence among sectors, and global competition, Dealership Technology companies must execute and adapt their business models to keep pace with what’s ahead.
From formulating a strategy to implementing a solution, Withum’s Dealership Technology industry specialists will help guide you to the gateway to growth, profitability, and compliance. Whether you are contemplating entering new markets; introducing a new business model; scaling and streamlining operations; minimizing risk exposure and tax liability, regulatory and compliance issues; executing transactions; or addressing cybersecurity and privacy, we’re here to help take you to the next level.
Dealership Technology Challenges and Trends
With the amount of protected personal information (PPI) and valuable company data located within today’s connected vehicles, many cyber threats can be devastating to your business. Ensuring your customer data is safe is vital to the long-term health of your automotive technology business.
Disruption within dealerships occurs because of an unexpected pivot resulting from intense research and development. The dealership technology industry is full of experimenting with new ideas. Dealership technology companies with certain R&D activities can reduce their payroll tax liability or tax liability (if the company has positive net income) by qualifying for the R&D tax credit.
In a world of connected vehicles that cause privacy concerns for dealerships, set your dealership technology company apart from the competition by getting a SOC report. Each report acts as assurance for customers and business partners that you have taken the proactive steps to safeguard data, be it financial or third-party, which provides confidence to consumers that your company is proactively being compliant with the new FTC Safeguard Rule.
Understand how to maximize value in an automotive technology exit.
Founders and Dealership Technology Executive Services
Founders and executives of automotive technology companies face unique situations and tax issues distinct from their businesses. Withum can offer an unmatched network of resources designed to ensure you have the skilled assistance necessary to mitigate taxes, maximize wealth and achieve your goals.
- Qualified Small Business Stock (QSBS):QSBS, sometimes called founder’s stock, is one of the ways entrepreneurs are rewarded for their hard work and dedication in getting a company up and running. The tax code currently has favorable terms for those meeting the criteria for IRC 1202 QSBS and exiting with capital gains. We can help you determine if you meet these criteria and advise on planning strategies to maximize.
- Mergers and Acquisitions:As the needs of your Dealership Technology business change, so do our service offerings. We provide insight into mergers and acquisitions’ compliance and tax aspects for a smooth transition.
- Secondary Sales:Auto-Tech founders often seek secondary sales for liquidity. We offer expertise when analyzing due diligence and tax consequences for your business.
- Equity-based Compensation:When it comes to understanding stock options, the list can feel endless – restricted stocks, incentive stock options, and nonqualified stock options. As a Dealership Technology founder, insight from the planning stage to income-tax forecasting is critical to evaluate equity-based compensation accurately.
- Tax Services:Our experts can help you understand your personal tax liability and maximize after-tax cash flow from personal tax to state and local to international taxation.
Dealership Technology Accounting and Advisory Services
Offering the auto-tech industry dependable solutions fastened with trusted guidance. We fill your needs with auto-tech accounting, revenue recognition, and internal audits. In addition to providing traditional accounting for technology companies, auditing, tax, and advisory services, our team of industry specialists can offer you expert insight in:
Dealership Technology Accounting Services
- Account Reconciliations
- SOX Compliance
- Internal Controls Assessment
- State and Federal Tax Issues
- Corporate and sales tax nexus issues
- International Tax Issues
- Outsourced Accounting Services
- Systems and procedures implementation
- Financial forecasts and budgets
- R&D Tax Credit Counseling
Dealership Technology Advisory Services
- Auto-Tech Valuation
- Due Diligence: Sales, Mergers, and Acquisitions
- Succession and Estate Planning
- Operational & Profitability Consulting
- Cybersecurity Services
- SOC 1, SOC 2 and SOC 3 Reports
- Start-up capabilities
- Assistance with funding sources, including VC, traditional financing, PE, etc.
- Equity Structure
- IPO and SEC services
Leadership
Insights
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