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  "documentTitle": "Dye & Durham Limited (DND)",
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  "authorName": "Arnaud Ajdler",
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  "presentationDate": "2024-12-01 00:00:00",
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  "notes": "Uses a combination of quantitative data (bar chart) and qualitative evidence (quotes) to build a case against management's capital allocation.",
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      "kind": "callout",
      "text": "The multiple provided by the Company understates the true acquisition multiple as it excludes transaction-related costs and TM Group loss, among others",
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      "text": "Given its current valuation, it is very difficult for Dye & Durham to continue its M&A strategy in a value-accretive way.",
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      "text": "EBITDA multiple: 17x",
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      "text": "The Board has paid an aggregate multiple of ~17x EBITDA on ~$2 billion worth of acquisitions while the Company's current multiple is ~8x 2025 EBITDA. Former employees talk about a lack of discipline around M&A and a propensity to underwrite big assumptions to justify high valuations",
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      "text": "Management is not particularly disciplined and tends to bid aggressively when it wants an asset.",
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      "text": "We could have bought a particular asset for 7x EBITDA, but Matt was not interested. When Matt heard that a competitor was interested to buy the asset, suddenly he wanted to own it, and we ended up paying a lot more. There is no real process or discipline around M&A.",
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      "text": "Dye and Durham keeps paying irrational prices for acquisitions where we compete.",
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      "text": "\"Management is not particularly disciplined and tends to bid aggressively when it wants an asset.\" — Former senior employee; \"We could have bought a particular asset for 7x EBITDA, but Matt was not interested. When Matt heard that a competitor was interested to buy the asset, suddenly he wanted to own it, and we ended up paying a lot more. There is no real process or discipline around M&A.\" — Former senior employee; \"Dye and Durham keeps paying irrational prices for acquisitions where we compete.\" — CEO of a competitor",
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      "text": "The Company Has a History of Paying Elevated Multiples for Acquisitions",
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