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  "documentTitle": "Rollins Inc. (ROL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-10-04 00:00:00",
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  "notes": "The slide uses a table to highlight the decline in non-Fox acquired revenue and earn-out payments.",
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      "kind": "callout",
      "text": "Revenue from recent acquisitions has declined double digits for three quarters and incentive earn-out payments also fell sharply in Q2 2023.",
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      "text": "Tuck-in (Non-Fox) Acquired Revenue % QoQ Change: -10.7%",
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      "text": "Spruce Point finds additional evidence that Rollins' tuck-in acquisitions appear to be struggling. Looking carefully at revenue contributed from acquisitions shows sequential double-digit decline in the past three quarters. Furthermore, contingent consideration payments (i.e., “earn-outs”) also declined sharply in the last quarter. We believe this supports our view that competition for deals may be intensifying and Rollins is acquiring lower quality targets.",
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      "kind": "quote",
      "text": "We don't -- we're not -- we get a little bit of a sugar high from tuck-in acquisitions where we're just slam-dunking them into the existing business.",
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      "kind": "quote",
      "text": "\"We don't -- we're not -- we get a little bit of a sugar high from tuck-in acquisitions where we're just slam-dunking them into the existing business.\" — CEO, JPMorgan Conf Sept 19, 2023",
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      "text": "Source: Rollins quarterly press release disclosures of acquired revenue and SEC filings. Note: Per Rollins, acquired revenue is based on the trailing 12 months.",
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      "text": "Rollins Revenue Acquired From Recent M&A Activities",
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      "text": "All Other Tuck-In M&A Deals Also Appear To Be Struggling....",
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