Broadridge Mutualization
Alrick Russell, Anthony Ali, Benjamin Wilson, & Christian Sanchez
BUSIE404/701_Spring 2016
Executive Summary• Guidance from Broadridge leadership (Robert Kalenka) and
careful analysis of Merrill Corp. provides a basis for exploring a mutualization/partnership opportunity between both companies that might potentially create synergies, grow revenues, and reduce risks among these two leading firms in the financial services industry
OverviewHistory
• Founded in 1968 by Kenneth F. Merrill• Based in St. Paul, Minnesota• Went public in 1986• Returned to private in 1999• Weathered 1987 stock-market crash
by diversifying services• Opened new offices and acquired
regional printers in late ‘80s, early ‘90s to strengthen national network
Business• Privately-held, ~ 47% employee-
owned, outsourcing company• 2 business segments: Legal and
Financial Transaction Services (LFTS), and Marketing and Communication Solutions (MCS)
• 3,800+ employees• 13,342 clients
Operates in 40 domestic + 22 international locations
Solutions
MERRILL DATASITE: A virtual data room (VDR) that provides secure, simultaneous access for buyers and sellers during financial transactions (M&A, bankruptcy, reorganization, exchange offers)
MERRILL BRIDGE: Supports filers worldwide to meet regulatory disclosure requirements, including all mandatory filings and shareholder communications
MERRILL DPA: Dynamic Publishing Automation (DPA) is a secure publishing platform that streamlines the production of compliance documents (prospectus, shareholder report)
MERRILL CONNECT: A centralized platform that supports marketing and communications with customers in print or electronic format
SWT
Strengths Adept at growing by
acquisitions Offers diverse financial
solutions to clients High client revenue
retention 50+ years experience
Opportunities Increased utilization
of products by clients Harness trends in data
analytics and digitization
Partnerships and cost mutualization efforts
Threats Sensitivity to
regulatory changes Mutual Funds and
ETFs Consolidation in
financial services industry
O
Weaknesses Reliance on the proxy
business Seasonality of revenue Cannibalization and
redundancies among acquisitions
SWOT Analysis
SWT
Strengths Globally connected
company High efficiency and
productivity Diverse client solutions Diverse customer base
Opportunities Increased profitability Continued growth Global markets Expansion into new
markets
Threats Growing Competitors Digital financial
solutionsO
Weaknesses Brand Portfolio Jobs security Competitive markets Advances in
communications technology
SWOT Analysis
Principal Competitors
Market Share
FinancialsYears Revenues EBITDA
2014 $872,700,000 Not Available
2013 $851,546,000 $136,000,000
2012 $782,604,000 $119,216,440
Years Revolving Credit Credit Rating
2013 $30,000,000 Low risk ofdelinquency/failure2012 $34,000,000
1YR Growth Rate 2.5%
3YR CAGR 3.7%
Income Statement
Balance Sheet
Revenue Growth Rates
Financials Increased XBRL market competition resulted
in loss of revenues in past few years Growth in DataSite business counterbalanced
financial performance
Financials Reduction of employees from 5,100 to 3,800 increased productivity
Synergies Common pursuit of selective strategic relationships Share costs on: printing, fulfillment, digital delivery, legal and
financial transaction document management, communication services, branded marketing services, and other information management services
Expand Broadridge’s client base into healthcare communications and elections services markets
Complement both company’s customer footprints in EMEA Presents new opportunities for Broadridge in Brazil, Mexico,
and China
Thank You!