• Dun & Bradstreet has filed to raise $1 billion in a U.S. IPO, although the final figure may be higher.
• The firm provides business information services worldwide.
• DNB was taken private in 2019, reorganized and recapitalized with more debt.
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Quick Take

Dun & Bradstreet (DNB) has filed to raise $1 billion in an IPO of its common stock, according to an S-1 registration statement.

The firm provides a range of business information and services to enterprises of all sizes.

DNB has been reorganized, but it is still early to tell if the reorganization combined with a heavier debt load is producing a better company and investment opportunity.

I’ll provide an update when we learn more IPO details.

Company & Technology

Short Hills, New Jersey-based Dun & Bradstreet was founded to provide business information such as company size, financials and credit background to assist other businesses in their research activities.

Management is headed by CEO Anthony Jabbour, who has been with the firm since its take private transaction in early 2019 and previously held several senior positions in the financial services industry.

Below is a brief overview video of the firm's Across the Enterprise approach:

Source: Dun & Bradstreet

The firm counts more than 135,000 clients worldwide, with 90% of the Fortune 500 and 60% of the Global 500.

Dun & Bradstreet has received investment via a take-private transaction in 2019 from investors including Black Knight (BKI), Thomas H. Lee Partners, Cannae, and CC Capital.

Customer/User Acquisition

The firm acquires large and medium enterprise customers through an in-house, dedicated, direct sales and marketing force focused on specific solutions and geographies.

The company also provides numerous self-service tools for small businesses to update their information or subscribe to a variety of online services.

Selling & Administrative expenses as a percentage of total revenue have been uneven as revenues have fluctuated, as the figures below indicate:

Selling & Administrative	Expenses vs. Revenue
Period	Percentage
Three Mos. Ended March 31, 2020	31.8%
2019	46.1%
2018	35.5%

Source: Company registration statementThe Selling & Administrative efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Selling & Administrative spend, was 1.8x in the most recent reporting period, as shown in the table below:

Selling & Administrative	Efficiency Rate
Period	Multiple
Three Mos. Ended March 31, 2020	1.8
2019	-0.5

Source: Company registration statement

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