KashFlow ownership and direction | AccountingWEB

KashFlow ownership and direction

This was an item that I felt was too industry-insider to bother covering for the mainstream AccountingWEB audience, but it did catch my eye last month when the FT market intelligence report suggested that "KashFlow to seek strategic investor".

To quote further (via Accman): "KashFlow, the UK-based private web-hosted accounting software company, will start looking for strategic investors next month, CEO Duane Jackson said. The company could offer a majority stake, Jackson said. He and Chairman Lord Young are the owners of the business. Kashflow would use the chairman’s contact network to seek strategic partners, Jackson added.

"Kashflow is interested in hearing from large traditional accounting services groups that could benefit from its software as a services (SAAS) offering, amongst others, Jackson said. Kashflow provides a web-hosted accounting software package developed for small businesses with turnovers of less than GBP 500,000 and typically employing between one and five staff."

Dennis Howlett (aka Accman) got a less headline-grabbing comment from Duane Jackson: "They specifically asked would I let go of a majority stake and I said I’d consider it for the right deal, but it’s not what I’m actively looking for."

So, it stirred up some interest for a few quiet days in February, but longer term it does raise some intersting questions about where KashFlow and Duane are likely to go if and when they do seek further investment.

What advice and suggestions would KashFlow users give them?

NB: I'm sure that within 10mins of hearing about this group, Duane will be along to join and add his own comments. Sorry if you find it a pain to comment on these discussions from your iPad, Duane. I've asked our tech team to add discussion group functionality to the mobile version of the site to make it easier.



John Stokdyk's picture

Duane continues to fight the rumours

John Stokdyk | | Permalink

The KashFlow investment saga continues to bubble along, this time with a report before Easter from Accountancy Age suggesting that Duane was planning to step down as CEO.

Very quickly we got an email from him explaining: "I haven’t announced I’m stepping down as CEO."

He continued: "What I actually said, in response to questions, was: I don't think a relationship with Sage would work. The launch of their incredibly basic SageOne product shows they're terrified of SaaS products, even their own, cannibalising their existing customers of desktop products. Sage would want to stunt our growth, and that's the exact opposite of what we're looking for.

"I think ultimately the company and our customers would be best served if I stepped back from the CEO role and focussed specifically on just marketing or technology. I'd be much more effective at either of those rather than in the CEO role juggling lots of balls.

"So with that in mind,  we're also talking to a small number of individuals who have experience of building high growth technology businesses.

Essentially, in addition to the software companies we’re talking to, we’ve also been approached by a couple of cashed-up entrepreneurs who have grown and exited big software businesses with a view to one of them investing as an individual and getting involved at board level."

Duane added that he would "love to name names", but cannot do so yet as nothing has been agreed with anyone.

abelljms's picture

end game

abelljms | | Permalink



the answer was Iris, for the link up.

I have already warned another firm to resist the pestering they are now subject to from Iris to buy kashflow accounting product.


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