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!