{
  "docId": "019dd923-622c-750b-8b98-98685acdea95",
  "docSlug": "11e962264b36",
  "documentTitle": "Carvana Co. (CVNA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 92,
  "pageCount": 98,
  "prevPage": 91,
  "nextPage": 93,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 16,
  "notes": "The slide uses a table to quantify the concentration of voting power and a callout box to emphasize the governance risk associated with the founder's criminal history.",
  "elementsJson": [
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    "data_table",
    "callout_box"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-98685acdea95/92",
  "deckHref": "/decks/019dd923-622c-750b-8b98-98685acdea95",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-98685acdea95.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-98685acdea95#slide-92",
  "components": [
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      "bbox": {
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        "y": 0.87
      },
      "kind": "callout",
      "text": "As shareholders, we would not feel comfortable with the Company being so heavily controlled by insiders – especially one convicted of felony bank fraud.",
      "attrs": null,
      "subkind": "primary",
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    {
      "bbox": null,
      "kind": "metric",
      "text": "Voting Rights: 90%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d5-8a073db7773e",
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    {
      "bbox": {
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      },
      "kind": "paragraph",
      "text": "Ernest Garcia II's significant holdings of Class B shares gives him 90% of total voting rights. While Class B shares themselves confer no economic rights, they are fungible into Class A shares when combined with an \"LLC Unit,\" which were distributed prior to the IPO. This leaves Garcia with effective economic control of Carvana of 70%. The IPO structure is a convenient way for Garcia to monetize his fortune in the used car business, where his prior attempt take DriveTime public failed. He also does not have to disclose his troubled legal past as he is not formally on the management team.",
      "attrs": null,
      "subkind": "paragraph",
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      "bbox": {
        "h": 0.28,
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      },
      "kind": "table",
      "text": "Carvana: Distribution Of Voting Rights table",
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      },
      "kind": "title",
      "text": "Convoluted Shareholder Structure Favoring Insiders",
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      "subkind": "headline",
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  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
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      "matchId": "7fee60d2-33da-403a-8cf2-7170a1c877c1",
      "evidence": "The slide explicitly calls out the founder's felony conviction as a governance risk.",
      "confidence": 0.9
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  ],
  "arcBeats": [
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      "beatId": "b5348fc0-f481-4cc9-9c3f-b00bbcf105e5",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The deck concludes with a clear victory for Spruce Point, with a reiteration of downside risk in CVNA.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
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  ],
  "loops": [
    {
      "to": 95,
      "from": 90,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "41e4cee6-eb3e-46a9-acbd-b6f915caa151",
      "evidence": "The deck presents various consequences of not taking action on CVNA's governance and financial concerns, including potential downside risk.",
      "position": 2,
      "objective": "To emphasize the consequences of not taking action on CVNA's governance and financial concerns",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
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  "locked": true
}