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  "documentTitle": "Xylem Inc. (XYL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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      "text": "Spruce Point believes Evoqua concocted a highly unusual earnout structure whereby it assessed a high probability that Mar Cor would fail to hit its sales targets, thereby manufacturing almost $5 million of EBITDA benefits.",
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      "text": "In January 2022, Evoqua acquired Mar Cor for an aggregate purchase price of $196.3m in cash at closing and a $12.3m earnout. Spruce Point believes Evoqua concocted a highly unusual earnout structure whereby it assessed a high probability that Mar Cor would fail to hit its sales targets, thereby manufacturing almost $5 million of EBITDA benefits. Unfortunately, we do not believe this is a repeatable source of EBITDA in 2023.",
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      "text": "Source: Evoqua SEC filings, Mar Cor deal announcement, and Spruce Point analysis",
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      "text": "Comparison table of Evoqua Earnout Structure vs Spruce Point Concern",
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