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  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-09-28 00:00:00",
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      "text": "We believe BR has generally gotten more aggressive in promoting its Total Addressable Market (\"TAM\").",
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      "text": "Spruce Point Capital Management",
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      "text": "Net Debt / EBITDA: 3.2x",
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      "text": "In May 2021 BR completed the acquisition of Itiviti... BR paid €2.1 (~$2.5) billion for Itiviti, placing a 10x multiple on its €210 million of sales and increasing debt by $2.2 billion while pushing its leverage ratio from approximately 1.5x to 3.6x.",
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      "text": "Debt Burden And Financial Flexibility Much More Limited This Cycle",
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      "text": "Itiviti Acquisition: An Expensive And Highly Levered Diversion From Core Struggles That Will Likely Fail",
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      "text": "We believe BR has generally gotten more aggressive in promoting its Total Addressable Market (\"TAM\"). In 2017, it provided a wide range of between $25 - $40 billion... Most recently in September 2022, BR again boosted its TAM by $8 billion to a $60 billion total; a 15.4% increase without any observable justification.",
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      "text": "To Keep The Growth Story Attractive, We Believe BR Is Exaggerating Its TAM With Weak Justification",
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      "text": "Spruce Point believes BR shareholders are ill-prepared for the magnitude of the potential pain to be had during the current economic recession. With a headline Net Debt / EBITDA ratio of 3.2x, BR is the most levered it has been in its public history...",
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      "text": "According to Moody's, a credit rating agency which was privy to Itiviti's management and insights about its business given its public debt rating, contracts were shorter than BR management's claims, and the recurring revenue mix was less than 100%. — Moody's",
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      "text": "Strong Sell Opinion On Broadridge Financial Solutions (NYSE: BR) With 65% - 75% Downside Risk",
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