Summary

Other Scenarios:

Buyer: WPP PLC (ADR) (WPPGY) Last Price: 61.47 Market Cap.: 15.51B
Target: Publicis Groupe S.A. (ADR) (PUBGY) Last Price: 25.94 Market Cap.: 9.95B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services 611
Business Services 228
Construction and Engineering   55
Consulting, Planning and Design   7
Professional Services 123
Market Research Services   6
Marketing Communications and Advertising Services 40

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 27)
  • 24/7 Real Media Inc
  • OgilvyAction
  • Grey
  • JWT
Target (Total: 18)
  • VivaKi
  • Publicis
  • Publicis Healthcare Communications Group (PHCG)
  • Razorfish
Buyer
  • BDGworkfutures
  • BDG McColl
  • Kantar Group
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 6)
  • Parkway Properties, Inc. (PKY)
  • Vornado Realty Trust (VNO)
  • Nielsen Hldg NV (NLSN)
  • Limelight Networks, Inc. (LLNW)
Target (Total: 6)
  • Parkway Properties, Inc. (PKY)
  • The Blackstone Group L.P. (BX)
  • Hudson Pacific Properties Inc (HPP)
  • Limelight Networks, Inc. (LLNW)
Buyer (Total: 10)
  • Microsoft Corporation (MSFT)
  • Johnson & Johnson (JNJ)
  • The Procter & Gamble Company (PG)
  • Unilever plc (ADR) (UL)
Target (Total: 26)
  • Wal-Mart Stores, Inc. (WMT)
  • The Procter & Gamble Company (PG)
  • Pfizer Inc. (PFE)
  • Unilever N.V. (ADR) (UN)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 101,387 51,051
Revenue Per Employee 157,481.1 80,517.0
Total Revenue 2,456.7 1,419.0
Total Expenses n/a n/a
Other Revenue n/a n/a
Cost of Revenue n/a n/a
SG&A Expense n/a n/a
Research & Development n/a n/a
Other Operating Expense n/a n/a
Operating Income 2,456.7 1,419.0
Unusual Income n/a n/a
LT Debt to Capital n/a n/a
Fwd P/E 11.05 13.05
Fwd P/Rev 0.93 1.20
Book Value n/a n/a
Curr Portion of LTD/Cap Lease n/a n/a

Individual Company Summary

Focused

Buyer

Focused (): Business and Public Services > Business Services > Professional Services > Marketing Communications and Advertising Services > Marketing and Advertising Agencies/Networks

Target

Sector Pure-Play (): Business and Public Services > Business Services > Professional Services > Marketing Communications and Advertising Services > Marketing and Advertising Agencies/Networks

Business Description

Buyer

WPP PLC (WPP) provides communications services on a national, multinational and global basis. The Company operates in almost 2,400 offices in 107 countries, including associates. It operates in four segments: Advertising and Media Investment Management, operating advertising networks Ogilvy & Mather, JWT, Y&R, Grey, Bates 141 and the United Network, and Media Investment Management companies, such as MediaCom, MEC, Mindshare and Maxus; Consumer Insight where operations are conducted through Kantar; Public Relations & Public Affairs where it operates Burson-Marsteller, Cohn & Wolfe, Hill & Knowlton and Ogilvy Public Relations Worldwide, and Branding & Identity, Healthcare and Specialist Communications, where operations are conducted by B to D Group, ghg, Wunderman, Sudler & Hennessey, OgilvyOne Worldwide, Ogilvy CommonHealth Worldwide, G2, OgilvyAction, 24/7 Real Media Inc and other companies. In May 2010, it acquired Midia Digital and I-Cherry, two of the digital agencies in Brazil.

Target

Publicis Groupe SA (Publicis Groupe) is engaged in the provision of advertising services, specialized agencies and marketing services (SAMS) and media services. Its primary activities include communications, media agency, and digital and healthcare communications. It offers local and international clients a complete range of advertising services through three global advertising networks: Leo Burnett, Publicis, Saatchi & Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty. As of December 31, 2009, it owned 100% of the equity in Razorfish and its subsidiaries. In April 2010, it announced that it acquired In-Sync, a company involved in the customer insight space. In addition, in April 2010, it acquired the remaining capital of W&K, thereby increasing its ownership to 100%. In May 2010, the Company acquired Resolute Communications Ltd. In July 2010, Publicis Groupe S.A. acquired G4. In April 2011, it acquired 11% in Brazil?s Talent Group.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 95.6 100
Operating Margin % 54.21 36.36
Quick Ratio 0.78 0.91
Current Ratio 0.93 0.94
Coverage Ratio -0.02 n/a
Total Assets 39,597.1 20,539.8
Return on Equity % 29.68 65.13
Return on Assets % 7.86 15.43
Cash+ ST Inv. Per Share 2.48 5.86
Total Debt 6,267.9 3,087.3
Total Debt to Equity % 59.78 63.45
Total Debt to Tangible Equity % n/a n/a
Debt to Asset % 15.83 15.03

Product Summary

Sector Buyer Target
Business and Public Services
Business Services
Construction and Engineering
Companies that provide Construction and related engineering services to businesses, governmental organizations, and other organizations. Examples of Services offered include Commercial/Industrial/Residential Building construction, Infrastructure Construction (Civil engineering projects such as roads, bridges etc., and Utilities facilities construction). Engineering Services are also included, which comprise environmental consulting services offered to manufacturers to deal with waste by-products, and engineering consulting services.
  
Professional Services
Includes accounting, advertising, consulting, legal, and printing services.

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services
Business Services
Construction and Engineering  
Consulting, Planning and Design
Companies which provide planning, engineering and design services to a variety of clients and industries, including: local/national governments; retail space developers, and other public/private sector clients. Includes sustainability studies, architectural/design services, and construction management services.

Buyer Products:

  • BDGworkfutures
  • BDG McColl
  
Professional Services
Market Research Services  
Market Research
Companies which provide market research services.

Buyer Products:

  • Kantar Group
  
Media Usage Assessment
Services which tabulate and analyze customers usage of online and television-based properties. Includes web analytics services.

Buyer Products:

  • Kantar Group
  
Survey-Based Research
Companies which offer survey-based research services for their clients.

Buyer Products:

  • Kantar Group
  
Marketing Communications and Advertising Services
Marketing and Advertising Agencies/Networks
Companies which provide integrated marketing, advertising, and communications services. They are generally comprised of worldwide networks of full-service and specialist agencies. The services include creating advertisements and advertising campaigns, brand consultancy, creative services, media buying (procurement of airtime/ad space on radio, television, print, and the internet), public relations, and related services. These companies generally offer the complete range of services which appear in the other sectors of the Marketing Communications and Advertising sector.

Buyer Products:

  • 24/7 Real Media Inc
  • OgilvyAction
  • Grey
  • JWT
  • Ogilvy & Mather
  • Y&R
  • G2
  • Ogilvy CommonHealth Worldwide
  • OgilvyOne Worldwide
  • Sudler & Hennessey
  • Wunderman
  • ghg
  • B to D Group
  • Hill & Knowlton
  • MediaCom
  • MEC
  • MAXUS
  • MindShare
  • Bates 141
  • The United Network
  • Burson-Marsteller
  • Ogilvy Public Relations Worldwide
  • Cohn & Wolfe
  • TAXI

Target Products:

  • VivaKi
  • Publicis
  • Publicis Healthcare Communications Group (PHCG)
  • Razorfish
  • Digitas
  • Starcom MediaVest Group
  • ZenithOptimedia
  • Medias & Regies Europe
  • We Are Fallon
  • Burrell Communications
  • Bromley Communications
  • Kaplan Thaler Group
  • Conill
  • Spillman Felser
  • Bartle Bogle Hegarty
  • Saatchi & Saatchi
  • Leo Burnett
  • MS&L Group

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Omnicom Group Inc. n/a 13,291.736 12.18 13.13 0.79 0.94 n/a
Interpublic Group of Companies, Inc. n/a 5,134.555 11.20 14.04 0.74 0.72 n/a
GSI Commerce, Inc. n/a 2,147.890 n/a n/a 1.52 n/a n/a
Havas (ADR) n/a 2,024.976 31.08 n/a 0.97 n/a n/a
MDC Partners Inc. (USA) n/a 394.272 n/a -347.25 0.35 0.39 n/a
Charm Communications Inc (ADR) n/a 332.704 13.26 4.50 1.30 1.00 1.58
Digital Domain n/a n/a n/a -7.73 n/a n/a n/a
Aegis Group PLC n/a n/a n/a n/a n/a n/a n/a
Buyer
  Reed Elsevier NV (ADR) n/a 23,012.850 39.93 10.74 4.75 2.58 14.73
Reed Elsevier plc (ADR) n/a 16,192.431 26.65 11.33 3.17 1.79 9.43
Omnicom Group Inc. n/a 13,291.736 12.18 13.13 0.79 0.94 n/a
Nielsen Hldg NV n/a 10,211.901 155.33 16.80 1.85 1.77 n/a
Publicis Groupe S.A. (ADR) n/a 9,950.366 12.02 13.05 0.93 1.20 n/a
Interpublic Group of Companies, Inc. n/a 5,134.555 11.20 14.04 0.74 0.72 n/a
Target
  WPP PLC (ADR) n/a 15,512.950 4.09 11.05 1.03 0.93 n/a
Omnicom Group Inc. n/a 13,291.736 12.18 13.13 0.79 0.94 n/a
Interpublic Group of Companies, Inc. n/a 5,134.555 11.20 14.04 0.74 0.72 n/a
GSI Commerce, Inc. n/a 2,147.890 n/a n/a 1.52 n/a n/a
Havas (ADR) n/a 2,024.976 31.08 n/a 0.97 n/a n/a
MDC Partners Inc. (USA) n/a 394.272 n/a -347.25 0.35 0.39 n/a
Charm Communications Inc (ADR) n/a 332.704 13.26 4.50 1.30 1.00 1.58
PDI, Inc. n/a 95.553 n/a 24.07 0.57 0.47 1.37
Aegis Group PLC n/a n/a n/a n/a n/a n/a n/a
Digital Domain n/a n/a n/a -7.73 n/a n/a n/a
HI MEDIA n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Parkway Properties, Inc. 1.22% 220.525 n/a 7.63 0.65 0.98 0.97
Limelight Networks, Inc. n/a 453.342 n/a -16.38 2.51 2.43 1.90
Buyer
  Parkway Properties, Inc. 1.22% 220.525 n/a 7.63 0.65 0.98 0.97
Vornado Realty Trust 0.30% 15,418.164 13.25 15.52 4.29 5.38 2.40
Nielsen Hldg NV n/a 10,211.901 155.33 16.80 1.85 1.77 n/a
Limelight Networks, Inc. n/a 453.342 n/a -16.38 2.51 2.43 1.90
Inversiones Centenario SA INVCEN n/a n/a n/a n/a n/a n/a n/a
Communisis PLC n/a n/a n/a n/a n/a n/a n/a
Target
  Parkway Properties, Inc. 0.70% 220.525 n/a 7.63 0.65 0.98 0.97
The Blackstone Group L.P. n/a 18,019.272 1,833.12 9.53 5.34 4.28 n/a
Hudson Pacific Properties Inc n/a 525.745 n/a 13.96 4.17 3.20 0.96
Limelight Networks, Inc. n/a 453.342 n/a -16.38 2.51 2.43 1.90
Great Portland Estates PLC R.E.I.T. n/a n/a n/a n/a n/a n/a n/a
Derwent London PLC REIT n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  The Procter & Gamble Company n/a 175,527.420 17.50 15.85 2.06 2.06 n/a
Unilever plc (ADR) n/a 151,974.050 47.81 14.89 2.27 2.30 n/a
Kraft Foods Inc. n/a 68,136.408 20.94 15.33 1.27 1.22 n/a
Nestle SA n/a n/a n/a 16.71 n/a n/a n/a
Buyer
  Microsoft Corporation n/a 255,495.222 10.93 11.48 3.55 3.49 6.10
Johnson & Johnson n/a 177,026.868 13.56 12.70 1.82 2.66 n/a
Target
  Wal-Mart Stores, Inc. n/a 214,951.526 13.16 12.62 0.49 0.46 4.60
The Procter & Gamble Company n/a 175,527.420 17.50 15.85 2.06 2.06 n/a
Pfizer Inc. n/a 164,234.752 11.51 9.35 1.63 2.66 n/a
Unilever N.V. (ADR) n/a 156,238.508 30.05 15.05 1.98 2.37 n/a
The Coca-Cola Company n/a 155,996.762 18.34 16.66 3.35 3.25 39.33
Unilever plc (ADR) n/a 151,974.050 47.81 14.89 2.27 2.30 n/a
Toyota Motor Corporation (ADR) n/a 135,144.282 0.83 34.13 0.01 n/a 0.01
Merck & Co., Inc. n/a 116,793.014 18.78 10.04 2.43 2.49 n/a
Verizon Communications Inc n/a 106,684.598 44.44 15.17 0.96 0.93 n/a
McDonald's Corporation n/a 102,628.371 18.82 17.48 3.80 3.64 n/a
Sanofi n/a 100,449.816 19.70 9.79 2.35 2.20 n/a
Visa Inc. n/a 93,049.295 22.47 18.93 9.80 9.04 22.27
Siemens AG (ADR) n/a 89,729.064 12.22 11.00 1.01 0.89 7.23
The Walt Disney Company n/a 76,931.366 15.96 13.89 1.88 1.82 n/a
Kraft Foods Inc. n/a 68,136.408 20.94 15.33 1.27 1.22 n/a
AstraZeneca plc (ADR) n/a 63,542.111 6.65 7.65 1.89 2.14 26.43
Hewlett-Packard Company n/a 59,528.277 9.08 6.51 0.47 0.48 n/a
Bristol Myers Squibb Co. n/a 54,410.777 14.72 16.32 2.56 3.02 n/a
Deutsche Telekom AG (ADR) n/a 50,861.925 35.93 11.89 0.80 0.72 6.78

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  TiVo Inc. n/a 1,443.767 34.69 -25.38 6.35 5.39 4.98
Tihama for Advertising Public Relations & Marketing n/a n/a n/a n/a n/a n/a n/a
Chime Communications PLC n/a n/a n/a n/a n/a n/a n/a
High Co n/a n/a n/a n/a n/a n/a n/a
The Jupiter Drawing Room (South Africa) & Partners n/a n/a n/a n/a n/a n/a n/a
oOh Media Group Ltd n/a n/a n/a n/a n/a n/a n/a
The Grass Roots Group PLC n/a n/a n/a n/a n/a n/a n/a
STW Communications Group Ltd n/a n/a n/a n/a n/a n/a n/a
G2R Incorp n/a n/a n/a n/a n/a n/a n/a
IMG Worldwide, Inc. n/a n/a n/a n/a n/a n/a n/a
CHI & Partners Limited n/a n/a n/a n/a n/a n/a n/a
Dentsu, Young & Rubicam Inc. n/a n/a n/a n/a n/a n/a n/a
F.biz Ltda. n/a n/a n/a n/a n/a n/a n/a
Scangroup Ltd n/a n/a n/a n/a n/a n/a n/a
Gfk SE n/a n/a n/a n/a n/a n/a n/a
Manufactura de Metales Y Aluminio Record SA n/a n/a n/a n/a n/a n/a n/a
GRUPO IBOPE n/a n/a n/a n/a n/a n/a n/a
Asatsu-DK Inc n/a n/a n/a n/a n/a n/a n/a
Target
  Microsoft Corporation n/a 255,495.222 10.93 11.48 3.55 3.49 6.10
Google Inc. n/a 195,640.947 18.49 16.77 3.52 5.51 3.97
Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
AOL, Inc. n/a 1,962.905 142.16 33.35 0.89 0.93 2.02
Somaxon Pharmaceuticals, Inc. n/a 28.272 n/a -1.87 2.08 0.93 1.93
KK Dentsu n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 15,123.4 10,727.4 25,850.8
Other Revenue n/a n/a n/a
Total Revenue 15,123.4 10,727.4 25,850.8
Cost of Revenue 666.0 n/a 666.0
SG&A Expense 4,480.3 4,994.0 9,474.4
Depreciation & Amortization 135.8 199.9 335.7
Interest Expense 4.4 n/a 4.4
Other Operating Expense 1,580.5 1,632.1 3,212.5
Unusual Expense (Income) 57.4 1.4 58.9
Total Expenses 6,924.5 6,827.4 13,751.9
Operating Income 8,198.9 3,899.9 12,098.9
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -142.2 -7.2 -149.4
Other, Net n/a n/a n/a
Income Before Taxes 1,322.2 1,105.8 2,428.0
Income Taxes 209.8 313.5 523.3
Income After Taxes 778.1 792.3 1,570.4
Minority Interest (IS) -70.3 -35.9 -106.2
Equity in Affiliates n/a 25.9 25.9
Net Income - Excl. Xord. Items 707.8 782.2 1,490.1
Net Income - Incl. Xord. Items 707.8 782.2 1,490.1
Income Avail. to Common 707.8 782.2 1,490.1
Share Items
Basic Avg. Shares Outstanding 1,244.2 404.5 1,648.7
Basic EPS - Excl. Xord. Items 0.75 3.89 0.90
Basic EPS - Incl. Xord. Items 3.03 1.94 0.90
Full Dilution Adjustment 9.2 80.5 89.7
Fully Diluted Shares Outstanding 1,344.0 474.4 1,818.4
F.D. EPS - Excl. Xord. Items 2.82 1.75 0.82
F.D. EPS - Incl. Xord. Items 2.82 1.75 0.82
Dividends Per Common Share 1.04 0.50 1.54
Balance Sheet
Assets
Cash and Equivalents 286.6 2,779.6 3,066.2
ST Investments 3,053.1 n/a 3,053.1
Accounts Receivable 11,882.8 8,867.9 20,750.7
Inventory 595.3 450.1 1,045.4
Prepayments and Advances 2,635.7 n/a 2,635.7
Other Current Assets n/a n/a n/a
Current Assets 18,310.2 12,097.6 30,407.8
Accum D&A n/a n/a n/a
PPE, Net 1,152.2 639.9 1,792.1
Goodwill & Intangibles 17,909.0 7,444.3 25,353.3
Long Term Investments 1,570.9 235.8 1,806.7
Note Receivable 526.2 n/a 526.2
Other Assets n/a n/a n/a
Other LT Assets 128.7 122.2 250.9
Total Assets 39,597.1 20,539.8 60,136.9
Liabilities
Accounts Payable 12,863.1 9,336.7 22,199.8
Payable/Accrued 4,200.1 n/a 4,200.1
ST Debt 415.4 1,179.1 1,594.5
Other (Current) Liabilities 2,161.0 2,323.7 4,484.7
Current Liab. 19,639.6 12,839.5 32,479.1
LT Debt 5,852.4 1,908.2 7,760.6
Total LT Debt 5,852.4 1,908.2 7,760.6
Minority Interest (BS) 327.4 33.1 360.5
Deferred Taxes 1,221.0 299.1 1,520.1
Other LT Liab. 2,071.3 593.9 2,665.2
Total Liabilities 29,111.8 15,673.8 44,785.5
Shareholders Equity
Common Stock 210.6 110.7 321.4
Additional Paid in Capital 88.6 3,497.1 3,585.8
Retained Earnings 10,421.6 1,590.4 12,012.0
Other Equity -235.5 -332.2 -567.7
Total Equity 10,485.3 4,866.1 15,351.4
Total Liab. & Equity 39,597.1 20,539.8 60,136.9
Shares Outstanding 251.3 368.0 619.3
Cash Flow
Operating Cash Flow
CF Net Income 1,460.2 818.2 2,278.4
CF Depreciation 334.5 201.3 535.8
CF Amortization 156.8 n/a 156.8
CF Deferred Taxes n/a n/a n/a
Other Non-Cash Items 182.9 408.4 591.3
Change in Working Capital 1,543.3 -158.2 1,385.1
Total Cash From Operating Activities 2,473.7 1,269.7 3,743.5
Investing Cash Flow (not calculated)
Capital Expenditures -207.7 -163.9 -371.6
Other Investing Cash Flows -82.3 -280.4 -362.7
Total Cash From Investing Activities -397.2 -445.8 -843.0
Financing Cash Flow (not calculated)
Dividends Paid -120.0 -153.9 -273.9
Purchase Or Sale of Stock 123.4 132.3 255.7
Purchase and Retirement of Debt -670.4 86.3 -584.2
Other Financing Cash Flow -62.6 -43.1 -105.8
Total Cash From Financing Activities -827.7 21.6 -806.2
Exchange Rate Effects -16.3 -86.3 -102.5
Net Change in Cash 1,232.6 759.2 1,991.8
Cash Taxes Paid 196.6 314.9 511.6
Cash Interest Paid 186.4 109.3 295.7