Deluxe Corporation
DELUXE CORPORATION
Contents
Section 1: DELUXE Corporation 1.1. 1.2. 1.3. 1.4. Company Business Overview Macro-Evironment & Industry SWOT Analysis Porter's Five Forces
Section 2: Business & Strategy Risks / Financing Requirements Section 3: Main Objectives of the Financial Policy Section 4: Financial Flexibility – Cost of Capital
Section 5: Is Deluxe’s Current Debt Level Appropriate ?
Section 6: FRICTO Analysis
Section 7: Conclusion - Recommendations
2
Section 1: DELUXE Corporation 1.1. Company Business Overview
Deluxe Corporation (NYSE: DLX) is one of the two largest check printers in the United States, and provides various personalized products and services to small businesses, financial institutions, and consumers. Some of the services available from Deluxe Corp are design services, website services, print marketing, promotional products, and fraud protection services. Deluxe and its subsidiary brands including New England Business Services Inc. (NEBS), McBee (formerly Royal McBee) and Checks Unlimited are organized into three business segments:
Deluxe Financial Services-serving banks and credit unions Deluxe Small Business Services-serving small businesses Direct Checks-producing and delivering checks directly to consumers
Deluxe is based in Shoreview, Minnesota and has 33 facilities in the U.S. and 3 locations in Canada to conduct its printing and fulfillment, call center, and administrative functions. In addition, the company sells personalized checks, accessories, stored value gift cards and other services directly to consumers. The company uses North American sales forces for direct marketing, independent distributors, financial referrals and internet to offer its products and services. The company caters small businesses and financial institutions to better operate, protect and grow their businesses.
1.2. Macro-Environment & Industry
The check printing industry is highly concentrated & competitive market
Contents
Section 1: DELUXE Corporation 1.1. 1.2. 1.3. 1.4. Company Business Overview Macro-Evironment & Industry SWOT Analysis Porter's Five Forces
Section 2: Business & Strategy Risks / Financing Requirements Section 3: Main Objectives of the Financial Policy Section 4: Financial Flexibility – Cost of Capital
Section 5: Is Deluxe’s Current Debt Level Appropriate ?
Section 6: FRICTO Analysis
Section 7: Conclusion - Recommendations
2
Section 1: DELUXE Corporation 1.1. Company Business Overview
Deluxe Corporation (NYSE: DLX) is one of the two largest check printers in the United States, and provides various personalized products and services to small businesses, financial institutions, and consumers. Some of the services available from Deluxe Corp are design services, website services, print marketing, promotional products, and fraud protection services. Deluxe and its subsidiary brands including New England Business Services Inc. (NEBS), McBee (formerly Royal McBee) and Checks Unlimited are organized into three business segments:
Deluxe Financial Services-serving banks and credit unions Deluxe Small Business Services-serving small businesses Direct Checks-producing and delivering checks directly to consumers
Deluxe is based in Shoreview, Minnesota and has 33 facilities in the U.S. and 3 locations in Canada to conduct its printing and fulfillment, call center, and administrative functions. In addition, the company sells personalized checks, accessories, stored value gift cards and other services directly to consumers. The company uses North American sales forces for direct marketing, independent distributors, financial referrals and internet to offer its products and services. The company caters small businesses and financial institutions to better operate, protect and grow their businesses.
1.2. Macro-Environment & Industry
The check printing industry is highly concentrated & competitive market