1. Broadridge Mutualization
Alrick Russell, Anthony Ali, Benjamin Wilson, &
Christian Sanchez
BUSIE404/701_Spring 2016

2. 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

3. Overview
History
• 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

4. Operates in 40 domestic + 22 international locations

5. 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

6. S W
T
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

7. S W
T
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
solutions
O
Weaknesses
 Brand Portfolio
 Jobs security
 Competitive markets
 Advances in
communications
technology
SWOT Analysis

8. Principal Competitors

9. Market Share

10. Financials
Years 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 of
delinquency/failure2012 $34,000,000
1YR Growth Rate 2.5%
3YR CAGR 3.7%
Income Statement
Balance Sheet
Revenue Growth Rates

11. Financials
 Increased XBRL market competition resulted
in loss of revenues in past few years
 Growth in DataSite business counterbalanced
financial performance

12. Financials
Reduction of employees from 5,100 to 3,800 increased productivity

13. 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

14. Thank You!