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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-03-08 00:00:00",
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  "notes": "The table highlights a shift from high deal velocity (2000-2014) to low velocity (2021-2022).",
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      "text": "We find a step-down in acquisition deal activity from almost 20 per year to low single digits in the past few years.",
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      "text": "Deals Completed: 3",
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      "text": "Acquisitions are a core part of WTRG's business growth and financial strategy. Since embarking on an aggressive roll-up acquisition strategy in the early 1990s of water and wastewater municipal assets, WTRG has made over 350 acquisitions spending approximately $4.5 billion. However, it's very clear that the acquisition growth engine is dramatically slowing. We find a step-down in acquisition deal activity from almost 20 per year to low single digits in the past few years. States enacting fair market value legislation generally receive an increase in initial deal activity that abates over time. Our research indicates that new states have been slow to enact legislation and, in some states (e.g., New Jersey), a referendum is required which can complicate closing deals.",
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      "text": "Slowing Deal Velocity Signals Growth Challenges",
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