In a strategic move announced on April 14, Intuit is preparing to acquire key assets and team members from Deserve, a mobile-first credit card platform. This acquisition aligns with Intuit's broader objective to enhance its suite of money management solutions for businesses. The company emphasized the importance of addressing cash flow challenges, which are responsible for over 80% of business failures. While terms of the deal remain undisclosed, it is expected to finalize in the third quarter of the year. The acquisition aims to empower businesses with better tools for real-time financial visibility and cash flow management.

Deserve's technology and talent will play a pivotal role in bolstering Intuit's offerings. According to the announcement, this partnership focuses on aiding businesses that face significant hurdles in managing their finances effectively. Studies indicate that nearly half of all small and medium-sized enterprises (SMBs) rely heavily on immediate sales or existing cash reserves to sustain operations. Access to financing can significantly boost confidence in overcoming economic obstacles, yet many SMBs either lack access or perceive it as unnecessary.

Further analysis reveals that approximately 70% of SMBs maintain less than four months' worth of cash reserves, leaving them vulnerable to disruptions. With 90% of their revenue consumed by daily operational expenses, business owners often face tight cash flow situations. As a result, 45% have had to forgo personal paychecks, while 22% struggle with essential bills, increasing the risk of closure. These findings underscore the pressing need for SMBs to reassess their cash flow strategies.

Globally, 45% of CEOs acknowledge the necessity of optimizing cash flow through reevaluating business models. Among smaller firms, concerns about long-term viability due to unchanged cash management practices are even more pronounced, with 56% of CEOs from businesses earning under $100 million expressing worry. Intuit's acquisition of Deserve aims to address these critical issues by providing innovative solutions to improve financial stability and growth opportunities for businesses.

This acquisition marks a significant step forward in enhancing cash flow management capabilities for businesses. By integrating Deserve's expertise into its portfolio, Intuit positions itself to offer more robust solutions tailored to the unique needs of SMBs. The collaboration promises to deliver enhanced tools for financial oversight and operational efficiency, empowering businesses to navigate economic challenges with greater confidence.