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  "docSlug": "0a3a22290f60",
  "documentTitle": "GFL Environmental Inc. (GFL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-08-18 00:00:00",
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  "notes": "Uses a 'before-after' or 'promise-vs-reality' structure to highlight the failure of the Bestway acquisition.",
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      "text": "Based on our research, GFL paid $84m. We estimate Bestway had $30m of sales, and GFL paid a hefty 2.8x / 10x multiple of sales and EBITDA.",
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      "text": "GFL announced the acquisition of Bestway, pushing its expansion into the Midwest Colorado Springs region. The deal was promoted by Regional VP John Griffith, who described the deal “as an exceptional fit”, that customers “shouldn’t notice any change in service”, and that all of Bestway’s management and senior staff would stay on with the business. However, Spruce Point’s research reveals otherwise. Customer complaints’ surged and GFL’s VP Griffith has since resigned.(1) Furthermore, we’ve heard that senior Bestway management has left the business, and their LinkedIn profiles corroborate this by not mentioning GFL.(2) Based on our research, GFL paid $84m. We estimate Bestway had $30m of sales, and GFL paid a hefty 2.8x / 10x multiple of sales and EBITDA.",
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      "text": "\"Bestway is a great company and compliments GFL's existing footprint in Colorado,\" says John Griffith, a regional vice president of GFL. \"This merger is an exceptional fit for both companies, because it allows for Bestway to access to GFL's greater resources, capital, and expertise in things like safety and sustainability, while still allowing Bestway to maintain its culture of excellent customer service and its special relationship with the Colorado Springs community to remain intact. Griffith said that apart from some technological upgrades coming to Bestway's internal systems, its existing customers shouldn't notice any change in services. All of Bestway's 153 employees and management team were retained in the merger. \"We are proud that all of Bestway's management and senior staff has been invited to stay post-merger and has elected to do so,\" Griffith says. \"With the addition of the Bestway team, the future very bright for GFL in Colorado.\" — John Griffith, GFL Regional VP",
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      "text": "Source: “Transition From Bestway To GFL An Uphill Battle”, CSBJ, Feb 2020; “GFL working to overcome trash service issues for Colorado Springs customers”, KKTV11, July 2020; “GFL acquires Colorado-based Bestway Disposal”, Recycling Today, March 2019; Yelp Reviews",
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      "text": "Comparison of GFL's initial claims vs. local news reports and Yelp reviews.",
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      "kind": "title",
      "text": "The Bestway Acquisition: Handled In The Worst Way According To Locals",
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