GoSimpleTax snaps up Coconut to create cloud challenger
Tax tool GoSimpleTax has bought accounting app Coconut to create a bookkeeping and filing solution for individuals and small businesses, as the Making Tax Digital for income tax self assessment delay continues to bite smaller players in the accounting software industry.
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The real strategists would, of course, have anticipated the threshold raising and date extension owing to the obvious impracticalities. Coconut a bit shy on this one.
Coconut stated there would be “no cash consideration up front” from the deal, which instead offers “an equity element to the deal that may produce some future upside to existing investors”.
And in English?
Sounds like there's been some kind of (unannounced) share-swap deal?
But with no cash on the table and no open market in the acquirer's shares, there's no obvious exit route for Coconut investors ... so what do Messrs Goodall and O’Connor get out of this (or is it just an exit from liabilities)?
Well, they get the kudos for trying for a start. And that don't pay the bills unfortuneatly but it sounds like (independently from this article) that they will be OK.
It's the entreprenueral spirit, and seeing a challenge and wanting to fix it, and heaven help me a damn good product that fixed some real problems. The fuel needed was MTD ITSA and the delay here, was I think we can all agree, out of their specific hands.
Not every product will make it, but if you're willing to commit to the stress, strains , anxieties and deferment of gratification which is to be a product founder then good on 'em for giving it a go.
@Richard, but they are trying to solve a problem which largely does not exist outside of the requirements of MTD.
That is not very smart given your product is hanging on some pretty poor legislation which might at any time be pulled. you are then solving a "must have" rather than a "want", which in turn puts on a "cheap is best" market. Look at Energy Performance certs. No-one gives a stuff about them, its just a "buy the cheapest" product, and the whole thing could be cancelled overnight as its useless.
I wasn't decrying the general entrepreneurial spirit, Richard, but the extract that I quoted from the article was the communication from the founders to the Crowdcube investors ... and seemed somewhat equivocal in admitting that they've probably lost that investment.
FWIW I've created (and sold) several businesses - but with Mr Micawber as my patron & guide, I only ever gambled with my assets/cash. I know it's seen as very old-fashioned, but I've never been keen on the modern trend to raise money from strangers in order to pay for the betting stake (as Branson, and others, have said frequently the philosophy is to 'get your bets funded')!
So the smart money must be MTDfIT is dead for landlords if this deal is the best outcome.
My view is that there is simply is no business case for the majority of small landlords to use software. Its just too simple.
Just because you *can* write some software doesn't make it useful to the general public.