Jennifer Honeycutt: Yes. This is everyone’s favorite topic, I think. We are 207 days post spin, I think, today. So it’s still early days here. But I have to say, we have a very, very robust process and a strong pipeline of activity, both in the Water Quality side, the PQI side with a number of opportunities that we’re considering. We are going to stay disciplined here, consistent with our heritage and focus on making sure that we’re going after the right markets, strong companies within those markets and making sure that they come at the right valuation. We continue to like businesses that have similar operating model, durability and financial profile to those that we have in the portfolio today. Businesses that can drive VES, or if they can utilize VES for continued improvements in growth in margin.
And certainly, our bias towards M&A is an important catalyst here going forward. But we will continue to maintain the rigor and the discipline that we have inherited from our history. And as always, M&A is a little bit episodic. We do see more opportunities opening up relative to actionability as the year progresses. And so we are encouraged by that.
Jeff Sprague: And then maybe unrelated and for Sameer. Given that maybe kind of the consumables versus equipment mix doesn’t really shift a whole lot until we get into the second half of the year. Why is it that margins would be down sequentially Q1 to Q2 on sequentially higher revenues?
Sameer Ralhan: As we go from Q1 to Q2, Jeff, this is — really ends up — the first thing is the second quarter ends up being a seasonally heavier trade show activity quarter for us. So the operating expenses do go up seasonally just for us in Q2 and Q1. And that’s — I would say, applies to both the segments. The other fact that is just some of the corporate spending. As we said at the beginning of the year in February, right, we just want to be very cautious and judicious as you bring in the corporate expenses, from a stand-alone company perspective. So some of that is just how we’re pacing in and slowly in the second quarter, some of that just going to ramp up. And lastly, I would say, as Jennifer mentioned, we are investing on the SG&A side. And in Q1, we did make investments. We’re going to start seeing more run rate impact as you move into the second quarter. So it’s really a combination of those 3 things that’s driving the sequential decline.
Jeff Sprague: Does it bias towards one segment or the other?
Sameer Ralhan: No, it’s pretty universal across the board.
Operator: We’ll take our next question from Mike Halloran from Baird.
Mike Halloran: So following up on [ph] question, as you became a stand-alone company, did you have to change processes lean in any way from an organizational perspective with incremental resources, whatever, to essentially build the muscle on the M&A side, obviously, a little bit less prioritized at Danaher? So is there anything that you’ve had to do to build that up more than what you had when you came in here and centralization of resources. And then I guess the second part is how integrated is that with your R&D functionalities as we sit here today?
Jennifer Honeycutt: So clearly, standing up — a stand-alone company does require a corporate organization to support it. Previously, tax and treasury and all of those functions were taken care of for us. But with respect to sort of the M&A trajectory, we were very deliberate in bringing in top talent in our strategy and sustainability function and our corporate development function. Both of those individuals that sit on my staff have long-standing histories within Danaher building strategy and executing on M&A. Insofar as the muscle building within the operating companies themselves. We have upskilled the capability for our leadership within the operating companies to be able to performed strong due diligence, look at effective ways of integrating and so on. So we spent actually quite a bit of time here in both the ramp up to the spin and following the spin itself.
Mike Halloran: And the second one is just kind of putting the commentary together on the water quality and the PQI side as far as starting to see some green shoots in specific areas or recovery in specific areas. How much of that is embedded from here from a guidance perspective? Are we talking relatively normal sequentials, or is there an assumption for an improved backdrop as we get through the year and just had some context?
Sameer Ralhan: I’ll take this one. Essentially, it’s pretty kind of a gradual sequentially improving quarter-by-quarter that you just built into the guide at this point. As I said earlier, really what we’re building is this point for — in the near term is really more on the consumables side, still that trend slowly kind of building equipment side, it’s really more in the second half of the year. So there’s a little bit of a macro backdrop helping us some of the equipment side coming back but it’s going to be pretty moderate sequentially kind of going up but on a year-over-year basis, as you can imagine, from the Q3, Q4 will be better. That’s how the math works.
Operator: We’ll take our next question from Deane Dray with RBC Capital Markets.
Deane Dray: I appreciate all the color and specifics in the slides in your prepared remarks. I’d like to get a very specific question and water quality, if I could. So the new EPA regulations on PFAS, the 4 parts per trillion is really — as that pushes the testing technology limits. And right now, it’s still you have to use a prohibitively expensive mass spec, no utility really can afford that. So is the industry any closer, are you all any closer to what might be a more economical test because all this is going to be seeing incredible demand over — as of now, as of 2 weeks ago.
