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  "documentTitle": "NMC Health plc (NMC.LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2019-12-17 00:00:00",
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      "text": "We are unsure how deep the rot at NMC goes, but we do not believe that its insiders or financials can be trusted.",
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      "text": "Management Compensation: $18.70mn",
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      "text": "In early 2018, NMC acquired 70% of CosmeSurge from KBBO Group for $170 million, paying 12x EBIDA for it. Of course, KBBO's Chairman is Khalifa Bin Butti. Even without the doubts about transactions involving KBBO and other de facto related parties, the presence of a major shareholder and board member of NMC in this transaction represents a conflict of interest that raises doubt about the valuation of a transaction price “based on valuation done by management”.65",
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      "text": "To show how brazen NMC insiders are about their transactions with the company, NMC paid $170 million to KBBO Group for an early 2018 acquisition without any third-party valuation. We are of the opinion that third party rubber stamps are pretty easy to come by, which is why it is telling to us that the board was so unconcerned with appearances that it did not even put such a fig leaf in place here.",
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      "text": "65 NMC 2018 Annual Report, p. 95",
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      "kind": "table",
      "text": "NMC Key Management Compensation ($mn) 2014 2015 2016 2017 2018 3.09 6.49 10.25 15.17 18.70",
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      "text": "$170 Million to KBBO Group Based on Management Valuation Alone",
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      "text": "Conclusion",
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