{
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  "docSlug": "0cee9cc55960",
  "documentTitle": "Generac Holdings, Inc. (GNRC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-06-22 00:00:00",
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  "notes": "Uses side-by-side comparison of SEC filings and UK subsidiary filings to expose inconsistencies in deal valuation and structure.",
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      "kind": "callout",
      "text": "Off Grid Energy was acquired on Sept 1, 2021. Generac’s corporate press release obscured the fact that its Pramac business was the end acquiror.(1) Generac’s SEC filings show the deal price fell 30%. Upfront cash declined from $32.5m to $24.4m. However, the Generac-Pramac UK subsidiary filing disclosed GBP 20.75m ($28.5m) of initial consideration. The earnout period was later disclosed as March 31, 2022 which is just 6 months after closing. Spruce Point believes this is an unusually short earnout period. We observe that no contingent consideration was paid by Generac in Q1 2022 which suggests that Off Grid failed to hit its milestones.",
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      "kind": "callout",
      "text": "Spruce Point believes this is an unusually short earnout period. We observe that no contingent consideration was paid by Generac in Q1 2022 which suggests that Off Grid failed to hit its milestones.",
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      "kind": "source-note",
      "text": "1) Generac issued a corporate press release and Pramac subsidiary press release",
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      "kind": "table",
      "text": "Initial Deal Disclosure (Q3 2021 10-Q) vs Revised Final Disclosure (2021 10-K) vs Generac-Pramac UK filing",
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      "kind": "title",
      "text": "Evidence of Generac’s Shady Acquisition of Off Grid Energy",
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      "evidence": "Detailed analysis of Generac's financial strains",
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