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  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-10-25 00:00:00",
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      "kind": "callout",
      "text": "Backing out the value paid for scil and CVM, as we don't believe those assets have accreted in value, and subtracting those companies' pro rata revenue contribution in 2021 (assuming a constant percent of revenue), pre-transaction (or \"Core\") Heska is trading at 17.5x 2021E revenue. We note that IDEXX is trading at 17.6x, and Heska is no IDEXX.",
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      "text": "We fail to understand why any investors would ascribe IDEXX’s multiple to “core” Heska given its precarious competitive position, inferior innovation, dramatically lower margin profile, and vastly inferior management team.",
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      "kind": "list",
      "text": "Rationale For IDEXX Trading Premium: Dominant market share, superior growth/margins, broad portfolio, reference lab, IP, SaaS business, management team, and market analysis.",
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      "text": "We fail to understand why any investors would ascribe IDEXX's multiple to \"core\" Heska given its precarious competitive position, inferior innovation, dramatically lower margin profile, and vastly inferior management team.",
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      "text": "Source: Bloomberg",
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      "text": "Non-scil / CVM Heska Valuation table showing market cap, consideration paid, implied core value, revenue contributions, and implied EV/2021E revenue.",
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      "text": "If We Value scil And CVM At The Price Paid 1.5 Years Ago, Heska Is Trading At 17.5x, In-Line With IDEXX",
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