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  "docSlug": "9551be67f14d",
  "documentTitle": "Perion Network Ltd. (PERI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-05-23 00:00:00",
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  "pageNumber": 99,
  "pageCount": 127,
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  "nDataPoints": 40,
  "notes": "The slide uses a table to expose a potential contradiction between the company's claims of high-margin technology and the low multiples paid for acquisitions.",
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      "text": "Spruce Point is skeptical about the quality and valuation of targets acquired by Perion. It has paid just ~30% cash upfront and structured most payments as contingent payment earn-outs if the businesses succeed.",
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      "kind": "disclaimer",
      "text": "Note: Pub Ocean earnout contained an unusual provision, \"Under the terms of the amended MIPA, it was agreed with the Sellers, that (i) revenue and EBITDA of Pub Ocean will be attributed towards Sellers' revenue and EBITDA targets under the MIPA with Perion; and (ii) Sellers will bear 40% of the cost of milestone payments that are ultimately payable to Pub Ocean under the Asset Purchase Agreement (as defined below), which will be paid solely by deductions from their own earn-out payments and certain escrowed amounts.\"",
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      "kind": "metric",
      "text": "Total Deal Value / EBITDA: 8.4x",
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      "text": "Spruce Point is skeptical about the quality and valuation of targets acquired by Perion. It has paid just ~30% cash upfront and structured most payments as contingent payment earn-outs if the businesses succeed. Assuming the maximum earn-out is paid, the transactions were completed on average at 1.5x and 8.4x sales and EBITDA. This strikes as low for reportedly high margin technology companies.",
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      "kind": "quote",
      "text": "Under the terms of the amended MIPA, it was agreed with the Sellers, that (i) revenue and EBITDA of Pub Ocean will be attributed towards Sellers' revenue and EBITDA targets under the MIPA with Perion; and (ii) Sellers will bear 40% of the cost of milestone payments that are ultimately payable to Pub Ocean under the Asset Purchase Agreement (as defined below), which will be paid solely by deductions from their own earn-out payments and certain escrowed amounts. — Perion 20-F Reports and Spruce Point analysis",
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      "kind": "table",
      "text": "Analysis of PERI's Recent Acquisitions table",
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      "kind": "title",
      "text": "Irrationally Low Acquisition Values",
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      "evidence": "The deck presents a series of logical and coherent arguments to build a case against PERI.",
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