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  "documentTitle": "Xylem Inc. (XYL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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  "notes": "The slide uses a 'Perception vs. Reality' framework to systematically dismantle the investment thesis of the Xylem-Evoqua deal.",
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      "text": "Xylem has repeatedly said that conversion of digital backlog to sales is higher margin. However, according to a former high-level executive, digital sales are actually dilutive to margins and do not scale as a result of the human capital investment needed.",
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      "text": "The 22x '23E EBITDA valuation ascribed to Evoqua and 25% share dilution was described as \"crazy expensive\" and \"surprising\" by a former high-level executive.",
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      "text": "Summary of Where Spruce Point Disagrees With Key Aspects of The Deal And Believes Xylem Has Potentially Misled Investors",
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