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  "docSlug": "97e66c73c118",
  "documentTitle": "Hill-Rom Holdings, Inc. (HRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-10-29 00:00:00",
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  "notes": "The slide uses a 'bridge' logic to calculate incremental revenue capacity from debt capacity, then compares this to growth shortfalls.",
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      "kind": "callout",
      "text": "Spruce Point estimates that, even if management were to exhaust its stated M&A capacity, Hill-Rom would still materially underperform consensus top-line growth estimates",
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      "text": "Net Debt / Adj. EBITDA: 3.0x",
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      "text": "Management said on its Q3 FY19 earnings call that it considers itself to have leverage capacity up to 4.5x Net Debt / Adj. EBITDA, suggesting that Hill-Rom has room to take on at most ~$900M in additional debt.",
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      "text": "1. Based on incremental revenue capacity via M&A, calculated iteratively",
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      "text": "Acquisition-Fueled Growth Limited By Existing Leverage",
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