Case Study: Commercial Electric Vehicle Manufacturer Positioned for Transaction with Strategic Investor

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A manufacturer of zero-emissions electric vehicles for commercial delivery and passenger transportation innovated their last mile delivery vehicle proof of concept. The model update included manufacturing enhancements and implementing smart technology to increase cost savings in logistical operations. Stakeholders looked to Withum for assistance to evaluate the company’s internal controls and upgrade their audit to public company recording standards in order to assist them in becoming SEC compliant and ready for a future transaction. Recognizing the time sensitivity involved in completing the project, Withum delivered. Management is now ready from a financial reporting perspective to take the next step in the evolution of the business and merging with a public company.

Headquartered in the western United States, the electric vehicle manufacturer was looking for an opportunity to go public after their perseverance, investment and innovation supported their business model. In addition to now having a proven concept, and an experienced management team from an operations and productive perspective, the private company had the necessary knowledge to shift its business strategy to compete in a quickly emerging sustainable last mile delivery market.

Leadership knew that to secure the funding needed to scale the business, they had to ensure a flawless proof of concept business model and ensure its internal controls and operations complied with SEC reporting and regulations should a SPAC look to acquire the business. Knowing the time and effort that goes into getting a private company ready for a public exit, the electric vehicle manufacturer needed to quickly position itself as a valuable player in a market experiencing rapid growth and competition.

Based on Withum’s reputation in the marketplace, the electric vehicle company knew Withum’s team could deliver on speed and quality and hold the company accountable to meet critical milestones in order to position themselves for the potential transaction.

The first step in Withum’s approach included a meeting with the stakeholders and business consultants to identify the areas within the company that posed the most risk and required the most attention to get the business transaction ready. The process included bringing in the appropriate Withum experts ahead of time to focus on these critical areas with company management that included complex debt and equity structuring, inventory valuation and join venture/equity investments so there was alignment on the approach, timelines and deliverables for all parties.

Withum held weekly meetings with key decision makers, the client’s consultants, and the audit committee chair throughout the process to ensure the project was on track. Consistent communication allowed Withum’s team to react quickly to issues as they arose and have specialists on the phone the same day to ensure the engagement moved along smoothly and within the previously defined timeline.

The company required a strategic investment partner to scale the business and deliver a competitive product in the last mile delivery space.

Because of Withum’s size and expertise in small to mid-sized startups and emerging growth companies, the engagement team was able to be nimble and act quickly to surpass the client’s needs. Working seamlessly alongside the company’s consultants and key decision-makers, Withum took the electric vehicle manufacturer from a private company that was reinventing its product to a PCAOB audit compliant operating company ready to take the next step in the journey to entering the public marketplace.