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  "docSlug": "49a0a0f158f5",
  "documentTitle": "Premier, Inc. (PINC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-25 00:00:00",
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  "nDataPoints": 24,
  "notes": "The slide uses a scenario-based comparison to argue for an immediate exit strategy.",
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      "kind": "callout",
      "text": "Spruce Point believes that leaving Premier's GPO immediately could be the best option for GNYHA",
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      "text": "Class B Share Value: -$65.1",
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      "text": "By choosing to opt out of its current deal next week and waiting the required one year to move to a new deal at market-level sharebacks (starting Oct 1, 2020), GNYHA would be able to exchange its remaining unvested shares for Class A shares, but its announcement could cause PINC shares to fall by 50% or more if analysts update their forward estimates for a likely Company-wide rerating. By instead choosing to renew its deal 1, 2020, when the next set of contractual lockups end, but before it can exchange its last tranche for Class A shares. Alternatively, GNYHA could choose to leave Premier immediately, foregoing much of the value of its Class B shares, but gaining an extra year of market-level sharebacks. Spruce Point finds that it may be in GNYHA's best interest to leave immediately and forego its final tranche of unvested equity.",
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      "kind": "source-note",
      "text": "1. Reflects Class B Unit redeemable value of $1.78, as implied by PINC cash flow statement\n2. Assumes 3% annual growth in purchase volume and gross admin fees",
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      "text": "Scenario A: GNYHA Leaves Early",
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      "text": "Scenario B: GNYHA Opts Out Oct 1, 2019 and Leaves Oct 1, 2020",
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      "text": "Scenario C: GNYHA Remains",
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      "kind": "title",
      "text": "Could GNYHA Leave Premier Even Sooner?",
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