What’s extra, know-how startups face a difficult fundraising setting, which might improve strain to promote to consumers equivalent to the key dealership administration system suppliers, Greenfield mentioned.
“Many startups will face an unfriendly reception for elevating funds this yr, and for individuals who have not been capable of cut back prices and get their [cash burn rate] underneath management, they could be pressured to liquidate and promote out,” he mentioned.
Even upstart DMS supplier Tekion will probably be expecting accessible know-how that might be an asset.
“Whereas we is not going to be actively going out and searching for acquisitions, we will probably be maintaining our eyes open and buying merchandise and/or firms to boost worth for our clients and assist speed up our progress,” Tekion CEO Jay Vijayan mentioned in an electronic mail assertion supplied to Automotive Information.
Here is a breakdown of the acknowledged plans from Reynolds, Cox and CDK.