Page 23 - Summer 2024

On the one hand, passing a dealership down through family or to existing management leads to
succession planning and valuation needs; on the other, selling to an external buyer—whether that be
another dealership group or a professional investor such as private equity or family office—leads to
accounting needs related to the transaction activities. Recently, we’ve seen combinations of owners
passing their dealerships on to the next generation and working with family offices or private equity
firms for growth opportunities. Each can have its benefits and challenges, but in the end, the decision
comes back to the initial question of where the dealer sees their dealership in the next 10 to 15 years.

We’ll continue diving deeper into industry consolidation, including accounting and tax implications
related to the gift and estate tax exemption sunsetting after 2025 in future articles. For now, we’ll look at
how consolidation has affected other areas of the industry: talent and cybersecurity.

Dealership Talent & Adapting to New Workplace Models

Talent Shifts in the Industry

Talent, digital transformation, and broader adoption of new workplace models are all connected
as we look toward the future of auto, machinery and equipment, commercial truck, and recreational
dealerships. Over the last several years, dealership groups have dealt with fluctuations in margin, the
impact of digital marketing, changes in consumer purchase behavior, and more. However, when hiring
new talent, many dealerships continue to look for the same type of candidates and frequently offer the
same outdated type of work environment. The workforce has changed dramatically over the last five
years, and the pool of potential candidates has different expectations and goals, and seeks options for
greater flexibility at jobs in other industries. In order to attract and retain top talent, different workplace
strategies might need to be considered.
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Other industries are offering hybrid work models where there were previously in-person-only
requirements. A 2023 remote work study (see chart below) shows that currently 59% of employees are
1
working in an office full time. The remaining 41% of jobs that offer remote or hybrid positions are likely
more appealing to job candidates.

Continue on page 24.

On The Move 2023