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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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  "notes": "The slide uses a combination of a peer valuation table and a financial statement extract to support the thesis of overpayment and financial stress.",
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      "text": "Spruce Point believes Generac massively overpaid for ecobee at 4.5x revenues.",
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      "text": "EV / Sales: 4.5x",
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      "text": "Spruce Point believes Generac massively overpaid for ecobee at 4.5x revenues. Comparable home and consumer connected equipment devices have traded for 1.8x with higher gross margins. Management has yet to articulate tangible revenue synergy expectations to justify over $800 million of goodwill and intangible assets being recorded. In addition, ecobee's balance sheet appears stressed with -$11 million of working capital at closing.",
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      "text": "So I guess when you think about ecobee and you look at -- as we ramp that up and they grow, their margin profile in the out years looks very similar to our clean energy business. We've talked about how that will probably be in the mid- to high teens EBITDA margins from a gross margin standpoint, closer to that mid-30% range.",
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      "text": "So I guess when you think about ecobee and you look at -- as we ramp that up and they grow, their margin profile in the out years looks very similar to our clean energy business. We've talked about how that will probably be in the mid- to high teens EBITDA margins from a gross margin standpoint, closer to that mid-30% range. — Q3 2021 Conference Call",
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      "text": "Summary Purchase Price Allocations table showing assets and liabilities for Deep Sea, ecobee, and All Other acquisitions.",
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      "text": "We Believe Generac Materially Overpaid, ecobee's Balance Sheet Signals Financial Stress",
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