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  "documentTitle": "Generac Holdings, Inc. (GNRC)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-06-22 00:00:00",
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      "kind": "callout",
      "text": "First year Adjusted Net Income is lower. Why?",
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      "kind": "callout",
      "text": "Why earnings multiple contraction and a low multiple if earnings are real and sustainable?",
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      "kind": "callout",
      "text": "Additional investment by Generac is very close to the reported Net Income.",
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      "text": "Pramac Multiple of Adj Net Inc: 7.3x",
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      "kind": "paragraph",
      "text": "Spruce Point has serious concerns about Generac's investment in Pramac (Italy). It acquired a controlling 65% interest in 2016 for $60.1 million. The minority owner is Mr. Paolo Campinoti, now EVP of Generac. Today he is EVP of EMEA, APAC and South America. If Pramac's financials are to be believed, it had a record year in 2021, and Generac purchased an additional 15% interest in an amount of $27.2 million, closely related to the size of its abnormal net income. Furthermore, Generac paid an irrationally low, and contracted multiple from its initial investment valuation in 2016.",
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      "kind": "source-note",
      "text": "Source: Generac SEC filings and Spruce Point analysis. Note: Generac average multiple per Bloomberg. 1) Campinoti profile 2) Only to account for 2016 results from March 1st closing 3) See next slide for our 2016 estimate. 2021 estimate per Pramac Press kit",
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      "text": "Analysis of Generac's Ownership of Pramac",
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      "kind": "title",
      "text": "Evidence of Serious Problems At Pramac",
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