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  "documentTitle": "Stryker Corp. (SYK)",
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      "text": "Spruce Point observes that Stryker stopped presenting Adjusted Return on Invested Capital (ROIC) as a metric to investors after 2017. Whereas the CEO claimed M&A discipline and the ability to walk away from bad deals as a factor driving consistent ROIC performance, recent commentary we received from a former M&A professional indicates that Stryker overpays for deals, and has been reluctant to walk away from deals or get price concessions from targets.",
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      "text": "Spruce Point observes that Stryker stopped presenting Adjusted Return on Invested Capital (ROIC) as a metric to investors after 2017.",
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      "text": "ROIC: 16.3%",
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      "text": "But we won't just pay whatever to companies. We're very disciplined. We walk away when the prices are above our ability to deliver value...",
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      "text": "Deals are significantly more expensive. The Stryker name carries a premium to it. I believe we overpay. When I was there I felt like we overpaid for deals.",
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      "text": "One of the challenges I find with the M&A teams and with Stryker is its psychological effect. They get very entrenched in having a specific company...",
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      "text": "\"But we won't just pay whatever to companies. We're very disciplined. We walk away when the prices are above our ability to deliver value... I think that's why you see the ROIC still consistent year over year over year in spite of the acquisition nature.\" — CEO Lobo, Q3 2016 Conf Call; \"Deals are significantly more expensive. The Stryker name carries a premium to it. I believe we overpay. When I was there I felt like we overpaid for deals.\" — Former Stryker M&A Pro",
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      "text": "Adjusted return on invested capital",
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      "text": "Spruce Point Believes Stryker Is No Longer ROIC Focused As Deals Become Less Economically Viable",
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