News Pulse for October 9, 2018

A daily download of SME, startup, fintech and tax news from around Australia.

New KPMG-owned Xero competitor Wiise looks to rhipe for growth

KPMG’s new cloud accounting player Wiise is hoping a new relationship with the “Netflix of cloud licensing subscriptions” will help it quickly gain traction to take on the likes of Xero and MYOB.

The accounting software platform, which has been jointly developed with the Commonwealth Bank and Microsoft, is targeting mid-market businesses which have outgrown Xero but do not require all the features, or costs, of Oracle or SAP’s enterprise resource planning software.

Cash flow increasing problem for SMEs

A new report has shone a light on the growing prosperity gap among small and medium enterprises (SMEs), providing an opportunity for brokers to help.

According to the Scottish Pacific SME Growth Index, more than half of Australian SMEs are forecasting improved revenue.

Banks ready to get personal

It was more than 20 years ago when I walked into my local bank branch to apply for a home loan. Upon entry, I was greeted by the branch manager and ushered into his office.

It’s an experience that has stuck with me ever since, not only because I was getting my foot on to the property ladder but because of the personal interaction.

Small business cash-strapped and time poor 

Small business owners are struggling to get their hands on funding and many are working over 80 hours a week to make ends meet, according to new data.

The report by lender Scottish Pacific compiles information from more than 1,200 small and medium-sized businesses (SMEs) in Australia across all states and major industries.

‘Crossbench targeted’ in work row

Unions have accused the ­Coalition of directing lobbyists to pressure the Senate crossbench to back new laws to stop employees paid as casuals claiming leave ­entitlements.

WorkPac, the company subject to a precedent-setting court judgment, has engaged the SAS Group to lobby politicians, including the Senate crossbench, to back changes to the Fair Work Act it says are needed to mitigate the ­impact of the ruling.

Debt to double at MYOB

Kohlberg Kravis Roberts is expected to more than double MYOB’s debt levels should the private equity firm be successful in its $2 billion-plus takeover bid.

MYOB announced yesterday that previous owner Bain Capital had sold its remaining 17.6 per cent stake in the business for $3.15 a share to KKR, taking KKR’s overall holding in the business to 19.9 per cent.

KKR may find it harder to repeat private equity magic at MYOB

It’s no surprise that private equity is back knocking at the door of accounting software firm MYOB. After all, the company’s two previous private equity owners, Archer Capital and Bain Capital, have extracted big returns out of their investments over the past decade.

But the latest bidder, global private equity giant KKR, may face a different set of challenges if PE lightning is to strike for a third time.

MYOB takeover could help Justin Milne change the subject

No one ever becomes ABC chairman for the money. Seriously: before he walked the plank, Justin Milne was on some $45,000 a year. You can make more than that missing meetings at a tinpot mining company!

But in case the lost pay cheque does put a slight dent in Milne’s budget, KKR’s offer to buy up MYOB, for $3.70 a pop, would more than replenish his earnings. And, you know, help him change the subject from all that ABC unpleasantness .

KKR’s MYOB bid a win for old private equity

When Bain Capital agreed to sell a 17.6 per cent MYOB stake worth $327.4 million, it went a long way towards sealing the fate of its accounting software company.

Bain cut a deal directly with cross-town rival KKR & Co, which already had taken a small position in MYOB by way of an equity derivative. Bain’s position had long been flagged for sale and KKR – sitting on a new $US9.3 billion regional buyout fund – was one of a small handful of potential buyers.

‘Business as usual’: MYOB receives $2.6 billion buyout proposal 

MYOB has reassured customers it will be business as usual while it assesses a $2.6 billion buyout proposal from American private equity firm KKR & Co.

The potential deal was announced to the market on Monday morning, alongside news KKR has purchased a 17.6% stake in the business from Bain Capital for $327 million.

Tips, comments or suggestions? Let me know in the comments, send me an email or tweet me @simeonduncan.

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