Judges Scientific has mastered the sometimes underappreciated art of buying and building. For the past 18 years, it has been acquiring manufacturers of scientific instruments, helping them to reach their full potential, then using the proceeds to repay borrowing and repeat the process. The results have been impressive.
It’s a fairly straightforward strategy. Identify businesses with little to no competition and high barriers to entry that perhaps lack commercial nous and sufficient access to capital; buy them at about five times earnings before interest and tax (ebit), with a mixture of shares and borrowed money; then provide them with the right environment to flourish. Existing bosses are kept on to run the company. Judges basically acts as a partner, providing financial support as well as
