{
  "docId": "019dd923-622b-71dc-a6d9-fc4318e06f9b",
  "docSlug": "6ded4b1cfe2c",
  "documentTitle": "Bristol-Myers Squibb Company (BMY)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-03-18 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 75,
  "pageCount": 197,
  "prevPage": 74,
  "nextPage": 76,
  "slideType": "valuation_reveal",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 45,
  "notes": "Includes a table of DCF projections and a stacked bar chart illustrating the deal value components.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "data_table",
    "valuation_table",
    "stacked_bar_chart",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-fc4318e06f9b/75",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-fc4318e06f9b",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-fc4318e06f9b.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-fc4318e06f9b#slide-75",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.25,
        "x": 0.73,
        "y": 0.75
      },
      "kind": "callout",
      "text": "We understand how Bristol-Myers arrives at a greater than $20 billion valuation for cost synergies",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5d84948c-b42f-475c-9cb0-5d0c33c24dd3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.22,
        "x": 0.49,
        "y": 0.71
      },
      "kind": "chart",
      "text": "BMY Management View of Celgene Deal Value",
      "attrs": null,
      "subkind": "bar-stacked",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "983323b7-33ab-4fe0-a24f-1796c77b0782",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.92,
        "x": 0.04,
        "y": 0.13
      },
      "kind": "list",
      "text": "In Bristol-Myers' S-4 filing, management presents their estimate of cost synergies, which ramps to $2.5 billion by 2022.\nIn our conversations with the Company, management stated that post-2022, synergies are assumed to be $2.5 billion into perpetuity.\nWhen using Bristol-Myers' synergy estimates, which ramp to $2.5 billion by 2022, we can calculate the greater than $20 billion in synergy value that management references.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "03f8ef2c-1e84-4550-a2b1-fef84e43b73d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "synergy value: $21.8",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f18-711c-9ae1-f6cf9e762716",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.94,
        "x": 0.03,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Public company filings, Bristol-Myers investor relations, Starboard estimates. (1) 1.3x applied to 2028 Unlevered FCF and calculated per guidance from the Company's S-4 filing. We use the Gordon Growth Method and assume 1.25% terminal growth and a 9% discount rate.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "48fe1fec-2358-4140-823b-57714f5f0eb9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.7,
        "x": 0.15,
        "y": 0.19
      },
      "kind": "table",
      "text": "Cost Synergies (pre-tax) table showing 2019E-2022E",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1db365d2-f56b-4d93-995b-7bb57557f02e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.22,
        "w": 0.94,
        "x": 0.03,
        "y": 0.43
      },
      "kind": "table",
      "text": "Bristol-Myers Management Assumptions for Cost Synergies table (2019-2028)",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1a2de4f8-773c-49a1-9f3b-efb1500effe8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.4,
        "x": 0.03,
        "y": 0.75
      },
      "kind": "table",
      "text": "DCF Value calculation table",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "23faa266-1ace-4751-8da2-c859a7c91bc2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.8,
        "x": 0.04,
        "y": 0.03
      },
      "kind": "title",
      "text": "We Also Understand How Bristol-Myers Arrives at Its >$20 Billion Valuation for Cost Synergies",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "126e9550-e4e5-4426-a8f5-11d150babe8d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "DCF Valuation",
      "slug": null,
      "matchId": "ea445b96-4c65-403e-b61b-abc39149391c",
      "evidence": "Discounted Cash Flow table and terminal value calculation",
      "confidence": 1
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 77,
      "from": 71,
      "name": "Iceberg",
      "slug": "10-iceberg",
      "bestFor": "Consulting, complex problem solving, organizational change",
      "matchId": "81bf725f-6cb1-4bc2-96ea-81ccf9b935e8",
      "evidence": "The document questions the valuation of Celgene's pipeline and the true cost of the acquisition.",
      "position": 1,
      "objective": "Exposing the true cost of the acquisition",
      "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause",
      "confidence": 0.7,
      "description": "Reveal that the visible problem is merely a symptom of a deeper root cause"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}