{
  "docId": "019dd923-622c-750b-8b98-c3e7825e1948",
  "docSlug": "8b6a62f49fba",
  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
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  "pageNumber": 18,
  "pageCount": 92,
  "prevPage": 17,
  "nextPage": 19,
  "slideType": "precedent_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 100,
  "notes": "The slide uses a 'Failure' label to characterize management's M&A strategy, contrasting deal performance with rising leverage.",
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      "text": "Based on our research and conversations, we believe recent acquisitions executed under Farrell and Dierker have been poorly planned and executed, and more aggressively structured (notably with earnouts) – insult to injury given the large multiples paid for these deals and rising debt load to fund the deals.",
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      "kind": "metric",
      "text": "Net Debt / Equity: 87.8%",
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      "text": "Based on our research and conversations, we believe recent acquisitions executed under Farrell and Dierker have been poorly planned and executed, and more aggressively structured (notably with earnouts) – insult to injury given the large multiples paid for these deals and rising debt load to fund the deals. As the recent deals underperform, we believe management will be under greater pressure to find even larger deals to fill the hole, and may exacerbate its situation by paying even larger premiums",
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      "kind": "source-note",
      "text": "Source: CHD financials",
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      "kind": "table",
      "text": "Debt and Equity table showing leverage ratios from 2015 to Current.",
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      "kind": "table",
      "text": "Recent Deal table showing deal dates, segments, prices, and multiples.",
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      "kind": "title",
      "text": "Recent Deal Summary",
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      "evidence": "Labeling acquisitions as 'Failure' and linking them to rising debt and poor management decisions.",
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      "evidence": "The document extensively details the problems with CHD, including rising debt, low-quality EBITDA, worrisome strategy shifts, and concerning CEO history.",
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      "evidence": "The overall thesis implies that failing to act on Spruce Point's analysis could lead to significant financial losses for investors holding onto CHD stock.",
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      "objective": "The cost of not selling CHD",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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