{ "docId": "019de073-7748-777e-921e-2ff685bb993f", "docSlug": "68b289701a4ad262acdc11b656cdb04e", "documentTitle": "Altair US LLC | Activist Presentation Deck | 16 slides", "authorId": "altair-us-llc", "authorName": "Altair US, LLC", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2022-09-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 8, "pageCount": 16, "prevPage": 7, "nextPage": 9, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 9, "notes": "The slide uses a 'villain' narrative to critique the board's valuation analysis.", "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de073-7748-777e-921e-2ff685bb993f/8", "deckHref": "/decks/019de073-7748-777e-921e-2ff685bb993f", "deckJsonHref": "/decks/019de073-7748-777e-921e-2ff685bb993f.json", "deckAnchorHref": "/decks/019de073-7748-777e-921e-2ff685bb993f#slide-8", "components": [ { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.15 }, "kind": "callout", "text": "We believe the “premium multiple” touted by Avalara’s Board is illusory and based on a fundamentally flawed analysis", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c3ca9921-782e-4343-b646-afd5fc4832e9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.4, "x": 0.55, "y": 0.28 }, "kind": "chart", "text": "Illustrative EV/NTM Revenue Multiples with an Appropriate Control Premium", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de7764a6-1fce-412e-a5c8-309ffb81a57d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.45, "x": 0.05, "y": 0.28 }, "kind": "image", "text": "Screenshot of Avalara's original chart", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba12c90a-36bc-4422-b9bc-55007f937793", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "list", "text": "1. Using comparable trading valuations rather than comparable precedent transactions fails to account for an appropriate control premium; we estimate that these multiples should each be ~26% higher (as shown in the chart at right)1\n2. Avalara is using a 10-year multiple; in our view, this is unusual and flawed because it does not reflect the state of the markets when Avalara’s deal was signed or today; Goldman Sachs did not use this methodology in any of the other transactions in its Selected Transactions Analysis for which it provided a fairness opinion\n3. Neither of these two indices were included as part of Goldman’s fairness opinion analysis that was approved by Goldman’s Fairness Committee", "attrs": null, "subkind": "numbered", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4bd58331-70b7-4e0d-ab0a-776a4d570849", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: FactSet. Data as of August 5, 2022 (“Transaction Date”). Index / peer data represents median with a 26% premium applied, which reflects the median one-day premium for the companies used in Goldman Sachs’ Selected Transactions Analysis, as Avalara’s Definitive Proxy Statement, filed with the SEC on September 12, 2022, at page 56.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "386f367e-40f2-4554-8ae5-fdd758e12b2b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Avalara Appears to Be Manipulating the Data to Manufacture a “Premium”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bbd89dee-5f1a-4d38-9ba3-1b2098cf2085", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "844d04d2-bbd0-47e2-9fef-524ba3f48593", "evidence": "The slide explicitly claims data manipulation and flawed analysis to manufacture a premium.", "confidence": 0.9 } ], "arcBeats": [ { "to": 14, "from": 4, "beatId": "73ef401a-536a-4391-80e4-a58c22a5bb9c", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Multiple slides expose contradictions in Avalara's claims.", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 10, "from": 8, "name": "Analogy", "slug": "08-analogy", "bestFor": "Complex concepts, new markets, technical explanations for non-experts", "matchId": "3ea39356-25b3-491f-81df-fa541ac7e8f8", "evidence": "The deck presents an analogy to show the flaw in Avalara's analysis.", "position": 0, "objective": "Is the premium multiple illusory?", "structure": "The Familiar Domain -> Key Parallel -> Applied to Our Situation -> Insight", "confidence": 0.7, "description": "Explain the unfamiliar through a well-understood parallel domain" }, { "to": 15, "from": 3, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "aad45e04-6ade-4594-b01d-0be0b132fce1", "evidence": "The deck implies the cost of inaction by not correcting Avalara's claims.", "position": 1, "objective": "What is the cost of inaction?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }