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  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
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  "authorName": "William Ackman",
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  "presentationDate": "2017-08-17 00:00:00",
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  "notes": "The slide uses a historical precedent (CDK) to frame a critique of the current target company (ADP).",
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      "text": "This stark and recent case study brings up several questions: How can a $2bn revenue segment of ADP have margins which are >80% below optimal levels? What does this say about ADP's corporate operating efficiency, culture, and governance?",
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      "text": "CDK Global, f.k.a. Dealer Services within ADP, was spun out from ADP on September 30, 2014. An activist investor, Sachem Head, announced an investment in CDK shortly after its spinoff. In June 2015, CDK announced its Business Transformation Plan.",
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      "text": "Lack of focus on efficiency & margin opportunity or accountability for results which were substantially below its primary competitor.",
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      "text": "Initial target to increase EBITDA margins by 1,300bps from 22% to 35% by FY 2018, with 150bps of margin expansion per annum thereafter. Now targeting FY 2019 EBITDA exit margin of 40% or above.",
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      "text": "Case Study – CDK Global",
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