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  "docSlug": "a458f84d7f69",
  "documentTitle": "Forescout Technologies (FSCT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-05-13 00:00:00",
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  "pageNumber": 51,
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  "notes": "Includes a callout box highlighting the discrepancy between Forescout's performance and the peer group median.",
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      "kind": "callout",
      "text": "Why should FSCT shares be valued on par with a peer group which is both more profitable and is projected to grow more than twice as fast (even before taking COVID-19 into account)?",
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      "text": "EBITDA margin: -10.4%",
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      "kind": "paragraph",
      "text": "Morgan Stanley, which advised Forescout on the deal, provides a list of suggested comps in its financial analysis of the deal contained within the proxy. Spruce Point believes that each of the comps provided is superior to Forescout: none of the companies provided on the list has both as low margins and as limited growth as Forescout. Accordingly, we believe that the Company should be valued at a material discount to the peer group provided in the proxy.",
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      "text": "1. Source: Bloomberg April 29, 2020\n2. As enumerated in the deal proxy\n3. Using estimates provided in (4) Illustrative Guidance\n4. Using estimates from Spruce Point's \"Pandemic-Adjusted\" (4) Illustrative Guidance",
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      "kind": "table",
      "text": "Peer comparison table including Enterprise Value, Revenue Growth, EBITDA Margin, and EV/Sales multiples.",
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      "kind": "title",
      "text": "Suggested Comps Are All Superior To Forescout",
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      "evidence": "Direct comparison of target company metrics against a peer group to argue for valuation discount.",
      "confidence": 0.9
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      "arcName": "Overcoming the Monster",
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      "evidence": "Spruce Point concludes that Advent should renegotiate or walk away from the deal.",
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