Deluxe Corp was dominant player on check printing industry and pionner.

Problem: Deluxe sales and earning decline as the company was struggling with the technological change. This is because of the online payment method, rising use of credit and debit card. Usage of paper has fallen. For Deluxe to survive in long run there need of necessary funding and financial flexibility Solution 1: Ceo Lawrence J. Mosner Reduced labor force Rationalized its operation Divesterd several non core business. Solution 2: Rajat Singh

Modest Beginning 1915 chicken farmer turn printer in on one room print shop in st.Paul Minnesota. (Deluxe Corp Printers) check printing service, check and cheque book 1965 public traded company 1980 traded on NYSE Company was largest check provider of checks in U.S 1975-1995 sales peak 12% Then decline because of check lost share to the electronic forms of payments like ATM, debit card credit card internet bil paying system. Deluxe compete with John Harland Clarke American

Financial Performance Late 1990s deluxe earning decline Deluxe undertook major reorganization which divested to non strategic business, reduced the num. Of employee and facilities. 62 printing plants to 13 Reduced laobor 15k to 7k & outsourced IT function Improved manufacturing efficiency and divested 20 separate business. Help its finance in 1998

2000 Dluxe major strategic shift with spin off it technology sub efunds and iDLX. Efund provide electronic payment product and services to financial and retail industries iDLX- provide technology related consulting services to financial service companies

with the spinoff Deluxe still refocused on the core business on check printing company made investors and the company stock price rose on the news. Following spinoff , Mosner remain paper payment segment around 3 primary business unit 1. Financial service sold checks to consumers through financial Institutions (3-5 year contract) 2. Direct checks sold to consumers through direct mail and inetrent 3. Business service segment sold checks,forms and related through financial institution and small business firms with no more 20 employee By end 2001 market respond favourably . firms share price grown more than 65% out perfoming s&P index which previous fall to 20%

Decline in check printing but need of revenue growth Notable info. Federal Rserve Board 2001 bank payment study indicate that check remain consumer more preferred method of non cash payment represent 60%.

Short term financing are meet: 1. Commercial Paper Singh thought risk of downgrade of Deluxe shorter credit rating is low 2. Line of Credit 3. Medium term note

Exhibit one summarized the firms share repurchases activity in recent years. The company spent about 350 million to repurchase 11.3 million shares. Solution other from buybacks and strategic acquisition 1. Singh believed that cash dividends would be held constatnt for the future 2. Capital expenditure would bout equal to depreciation for the next few years. Although sales might grow. Working capital turn should decline resulting in reduction in net working capital in first year followed by increase later. Exhibit 4 5 years bs ins. Forecast assume the existing debt will be refinanced by similar debt.