What Does the Sale of Abila Mean for MIP Fund Accounting Users?
Early this month, Accel-KKR announced that they had sold Abila to Community Brands (read the press release). Accel-KKR is a private equity firm that focused on technology companies. Accel-KKR purchased and brought Avectra (membership management software) and MIP Fund Accounting – joining them under the Abila brand.
Community Brands is part of YourMembership. Community Brands publishes on its website that more than 13,000 associations and nonprofit organizations use their solutions. MIP Fund Accounting users are now a part of this family.
Good News or Bad News: What Does the Sale of Abila Mean for MIP Fund Accounting Users?
It all depends. It depends on where MIP Fund Accounting fits in the overall strategic goals of Community Brands. For example, is Community Brands interested in becoming a market leader in the nonprofit accounting realm (and are they willing to invest in the product to do so)?
Areas of Concern: What Does the Sale of Abila Mean for MIP Fund Accounting Users?
• Existing MIP Fund Accounting customers are already questioning hefty annual renewal fees in light of very limited product enhancement. Will new ownership be willing to invest at a level that will bring meaningful enhancement to the product?
• Can the company afford to market to multiple executives within a nonprofit? Generally, the person that makes the decision to purchase association management solutions isn’t the same person who makes the decision to purchase nonprofit accounting solutions. Marketing investment means more sales. More sales means more revenue to fund software development. Will the company invest in both the marketing and software development of MIP Fund Accounting?
• Will the ownership turnover lead to employee turnover? It’s never a good sign when your contacts at the publisher are constantly changing – and even worse if they are constantly changing without significant growth in the customer base.
• Historically, associations have not comprised the lion’s share of MIP Fund Accounting customers, even when partnered with Avectra under the Abila brand. The financial accounting concerns within a faith-based organization, a healthcare organization, area agencies on aging, etc. are very different than that of an association. How important will the needs of non-Association organizations be in the MIP Fund Accounting product roadmap?
Change often spurs even very loyal users to re-evaluate what’s available to them in the market. They understand that their strategic goals outweigh the strategic goals of one of their vendors. They owe it to their colleagues, board, and constituents to closely monitor the situation.
We’ve answered dozens of questions from many organizations who are evaluating alternatives. Financial accounting is the only focus of cloud-based Intacct. Of all the solutions available in the market, Intacct has the sole endorsement of the AICPA.
Many nonprofits have made the switch to Intacct and we’re offering very favorable pricing to nonprofits making the switch – find out more here.