{ "docId": "019dd923-622c-750b-8b98-c99fec0ed8aa", "docSlug": "1c836eeb374c", "documentTitle": "Monolithic Power Systems (MPWR)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-10-09 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 93, "pageCount": 95, "prevPage": 92, "nextPage": 94, "slideType": "quote_slide", "function": "illustrate_case", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a conversational Q&A format styled as speech bubbles to present qualitative primary research.", "elementsJson": [ "headline_text", "paragraph", "quote_block" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-c99fec0ed8aa/93", "deckHref": "/decks/019dd923-622c-750b-8b98-c99fec0ed8aa", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c99fec0ed8aa.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c99fec0ed8aa#slide-93", "components": [ { "bbox": { "h": 0.07, "w": 0.98, "x": 0.01, "y": 0.18 }, "kind": "callout", "text": "As part of our diligence, we spoke with a former senior executive from the Post IPO era at Monolithic. We asked for his opinion if he thought MPS would ever be a takeover-target.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "74cc650f-b9b8-4f4c-8a80-9fa8a72f87af", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "The whole different culture, I think that's the biggest thing that keeps anybody from even trying to buy it.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee38-728b-98d0-e94f67a5bf25", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.72, "x": 0.2, "y": 0.29 }, "kind": "quote", "text": "\"Do you think there is a buyer for the company? If you put it up for sale, you do you think somebody would buy it?\"", "attrs": { "speaker": "Spruce Point" }, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3b20b8e2-d4aa-4919-8444-99c4e2d146c6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.48, "w": 0.72, "x": 0.2, "y": 0.41 }, "kind": "quote", "text": "\"You know, MPS carries a certain buyout premium... I don't know how to put it in any other way that's just based on their culture and style... So I think, uh, I think that's the strength of MPS, but also something that would keep a buyer away.\"", "attrs": { "speaker": "MPWR's Early Executive" }, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "71fbb2d0-7d7a-4e05-b380-f78b5e7a8437", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "You know, MPS carries a certain buyout premium. It's already baked into the price. Pick a number, 20%, 25%, assuming it's going to be bought. I think that's in there. Otherwise I can't figure out the P/E ratio. Uh, so, so the biggest issue is Michael not interested in selling the company. I mean, it's not the money. He does it because he likes to run it and the executives are with him I would say are not necessarily executives who would succeed at another company. I don't know how to put it in any other way that's just based on their culture and style. They would not necessarily show up at Intel and get a job. Right? So, so they all, I'm just being straight forward with you. Well, there's, as you said, the numbers. I think the thing that kept people from buying it, it's like, what happens if all these guys leave. And then what do we got? So that's always the biggest thing is the magic sauce leaves then really getting anything from the deal, right? The whole different culture, I think that's the biggest thing that keeps anybody from even trying to buy it. And so they're not, they're not sure. Uh, you know, and particularly since all the engineering now is mostly done in China and if you're not Chinese, you're not exactly sure if you're not speaking the language, if that's true or what's going on or who your key people are, all those kinds of things. So I think, uh, I think that's the strength of MPS, but also something that would keep a buyer away. — Former Senior Executive (Post IPO era)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee38-728b-98d0-efd7e1bbb93c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.65, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "Irrational Premium As A Takeover Target... Not So Fast", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4f6f2da6-2e75-449d-83e1-185e24488894", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 95, "from": 41, "beatId": "7f502b1a-d13a-4cdb-a619-66898178d5f2", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution (Provide relief)", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The document finally presents a solution, estimating 75-85% downside risk and providing a detailed valuation analysis.", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 95, "from": 88, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "93fe92a7-599f-4b8a-859b-61197bc69d8d", "evidence": "The document estimates 75-85% downside risk and presents a detailed valuation analysis.", "position": 1, "objective": "To highlight the potential cost of inaction for investors", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }