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  "documentTitle": "Arconic Inc. (ARNC)",
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  "authorName": "Elliott",
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  "notes": "The slide highlights the Firth Rixson transaction within a list of Aerospace and Defense M&A deals to contrast the implied EBITDA multiple against the CEO's justification.",
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      "text": "Note: Arconic has not taken a substantial impairment by burying Firth Rixson in multiple segments",
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      "text": "Taking two different approaches (taking Firth Rixson’s EBITDA and multiplying by the corporate multiple and taking Firth Rixson’s NOPAT over Arconic’s WACC) to measuring the extent of the value destruction as a consequence of the Firth Rixson acquisition yields the result that Arconic’s management has destroyed between $1.9 and $2.5 billion of value",
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      "text": "Implied EBITDA Multiple: 22.4x",
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      "text": "Taking two different approaches... measuring the extent of the value destruction... yields the result that Arconic's management has destroyed between $1.9 and $2.5 billion of value",
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      "text": "I know that some of you are already doing the math... You won't understand how the multiple here has to be calculated if you don't apply these backed-by-contracts revenues on a highly profitable basis.",
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      "text": "“I know that some of you are already doing the math, running the math and are probably saying, ‘Heck, what are they doing? They are paying at a multiple that's above the average multiple.’ You won't understand how the multiple here has to be calculated if you don't apply these backed-by-contracts revenues on a highly profitable basis.” — Klaus Kleinfeld",
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      "text": "Source: Arconic 2016 10-K; Alcoa 2014 10-K; Firth Rixson Acquisition M&A Call, June 26, 2014; Capital IQ",
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      "text": "Aerospace and Defense M&A Transactions Over $500 million",
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      "text": "Firth Rixson: What did Arconic Pay?",
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