OK, finally I can talk openly!
Those that have got to know me over the years on this forum (from way back when KashFlow was a brand new in-house project) know that I'm not usually so coy or elusive.
We were in the middle of negotiations when this thread first came up and I didn't think it wise to say anything publicly that could jeopardize the talks that were then ongoing..
Yes, I have been talking to Michael, and yes we were the company mentioned In the Telegraph article.
My business was started with the help of the Princes Trust. As someone that has had a lot of benefit from the Trusts business start up program and as a business that's been relatively successful I'm often asked to attend informal lunches with high net-worth individuals to talk about how great the Trust is and to try to raise funds.
I met Michael a few months ago at one of these lunches, we arranged to meet up again more privately at a later date. He very quickly and unexpectedly made a 7 figure offer to buy KashFlow. I turned it down and he doubled the offer.
Obviously I had to give the offer due consideration. I felt it was way too early to sell the company (it's still growing very fast and I'm still really enjoying it). We worked out a deal that would mean that I'd still run the company but would sell a large stake to him (and Elderstreet) and have a lot more capital and resources at my disposal.
It's incredibly flattering to be made an offer by someone who is undoubtedly the most successful individual in our industry, and he's certainly someone I feel I could work with.
After lots of soul searching and speaking to my advisors, we this week decided not to do a deal and to carry on growing the business independently.
The timing just isn't right. I think a large part of our success is the ability to move very quickly and make decisions in minutes without having to resort to decision by committee. I felt that being part of an AIM listed company would mean we lose that edge which would in turn mean our customers don't get the service they're used to in terms of new features being quickly added, etc.
So there you have it, an exclusive to UK Business Forums! I thought it only fair to (finally) give an honest response to the question as so many of our customers have come from this forum and so many of you have been incredibly helpful over the years.
Onwards and upwards!
PS. Jon, I don't think Elderstreet or Michael are just dipping their toes in. I think they're diving in head first. Michael sees the potential of SaaS and really appreciates the benefits of the SaaS business model. Unlike the green FTSE behemoth of the software industry.
Don't forget that Richard Holway, ex Ovum, is on the Elderstreet advisory board. Richard has been talking about the coming of SaaS for a number of years.
The company that Michael is building will certainly become a major player across a number of SaaS verticals (not just accounting).
