{
  "docId": "019dd923-622c-750b-8b95-a87005b884b8",
  "docSlug": "4cc7dff78d8c",
  "documentTitle": "Dye & Durham Limited (DND)",
  "authorId": "27_Engine_Capital",
  "authorName": "Arnaud Ajdler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-12-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.7778431,
  "pageNumber": 60,
  "pageCount": 112,
  "prevPage": 59,
  "nextPage": 61,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "overcrowded",
  "nDataPoints": 18,
  "notes": "Uses a waterfall chart to show the gap to the $1B target and a bar chart to compare scale against peers.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "waterfall_chart",
    "bar_chart_vertical",
    "callout_box",
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-a87005b884b8/60",
  "deckHref": "/decks/019dd923-622c-750b-8b95-a87005b884b8",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-a87005b884b8.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-a87005b884b8#slide-60",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.25,
        "x": 0.3,
        "y": 0.63
      },
      "kind": "callout",
      "text": "Leadership’s focus on total EBITDA vs. other TSX technology companies is irrelevant to value creation and highlights the ‘empire building’ state of mind of management",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0a8d1c19-e248-43a1-a9f9-4374dd2cf865",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.9,
        "x": 0.05,
        "y": 0.84
      },
      "kind": "callout",
      "text": "Bigger does not mean better. The best consolidators focus on maximizing return on capital and IRR – not targeting some arbitrary size.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "535eba57-26ef-490c-8bb5-660c07179538",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.2,
        "x": 0.4,
        "y": 0.25
      },
      "kind": "callout",
      "text": "The fact that $283 million in EBITDA is required to reach $1 billion shows leadership’s state of mind.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f3759331-d657-4f3d-ae1d-eaa34c8c5890",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "The fact that $283 million in EBITDA is required to reach $1 billion shows leadership's state of mind.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0396-73da-b8ff-4a3311a6ca9d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.45,
        "x": 0.52,
        "y": 0.42
      },
      "kind": "chart",
      "text": "Pro forma scale vs TSX listed technology companies",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fbc5996f-404c-41b6-afff-e407c70f66f3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.45,
        "x": 0.05,
        "y": 0.23
      },
      "kind": "chart",
      "text": "Waterfall chart showing build-up to $1B EBITDA target",
      "attrs": null,
      "subkind": "waterfall",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d2f934fc-24c3-4534-9bba-c4cbe9f41f90",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EBITDA: $1 billion",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0396-73da-b8ff-4fae462866b2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.9,
        "x": 0.05,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "Dye & Durham is myopically focused on hitting an arbitrary $1 billion EBITDA target, which puts pressure on management and the Board to pursue acquisitions at a rapid pace even if they don’t create shareholder value",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6441dd0a-3b8d-466e-8400-6d7bbe1c680b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.75,
        "x": 0.05,
        "y": 0.08
      },
      "kind": "title",
      "text": "Management and the Board Established the Wrong Long-Term Operational Target for the Company",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4c5ec10a-d9a0-431a-b8a1-94c141e4b37c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "antagonist-introduction",
      "slug": null,
      "matchId": "f530b05c-252d-494f-997b-5df83b8e9678",
      "evidence": "Frames management as 'empire builders' with an 'arbitrary' target.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 60,
      "from": 41,
      "beatId": "980e4df0-8b6f-46d5-bf52-5f1cd39afb14",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The path to victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The deck presents Engine's slate of nominees and plan for value creation.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}