Founders sell to Judges for just 4.8x EBIT on average because the company behaves with integrity and takes a hands-off approach post-acquisition with no cost cuts, synergies, or intervention. Over 85% of JDG's sales are from outside of the UK, highlighting the strategy of buying UK intellectual property and driving export sale growth. Judges has a long runway to continue making acquisitions, with well over 1,000 companies with revenues of £1-50mm in its target sectors.
Cyborg Score Rationale
Organic EBIT growth has averaged 9% over 20 years. The company demonstrates exceptional capital discipline and founder-friendly acquisition approach, generating significant long-term returns. The biggest risk is the potential retirement of CEO David Cicurel, who is 76.
Top Insights
Judges generates 22% per annum returns on incremental capital deployed through low acquisition multiples and hands-off post-acquisition management.
Judges specializes in UK-based design and production companies in the instrumentation business, similar to how Constellation acquires vertical market software or Halma acquires niche industrial engineering products.
Many acquired businesses grew organically at 9% without support from Judges, suggesting significant potential for organic growth acceleration post-acquisition.
Founder & CEO David Cicurel owns over £50mm in stock and options worth around 200x his base salary, aligning his interests with shareholders.