- Automatic Data Processing recently announced its intended spin-off of its dealer services division.
- With the spin-off, the company will be left with its employer & PEO services divisions.
- Looking at the operating profitability of these two divisions, it is clear that the company intends to focus on maximizing value for these two divisions.
- Strong revenue growth and expanding margins signal that the company is diverting all attention to capitalize on the current economic recovery.
- Strong M&A activity coupled with cheap funding presents opportunities for the company to acquire synergistic business lines to further supplement its core.