ADP

ADP is an American success story. The founder, with modest beginnings and a good idea, turns a company that does the payroll for a few companies in New Jersey, to a successful company that can boast 136 consecutive quarters of revenue and income growth since going public in 1961. The company is built on a solid economic model of providing outsourcing of payroll and other key applications to earn a recurring revenue stream. In the summer of 1995, management of the US-centric company with a few lackluster overseas experiences must decide whether it should acquire French-based GSI. The case asks the reader to take the position of Gary Butler, President of ADP Employer Services, weighing the risks of a large overseas purchase with the rewards of growth that a new market can promise.

Financial vs. strategic assessment Assessment of tradeoffs of M and A choices from the perspective of several stakeholders