Brilliant teardown of the whole Judges model. The part about Cicurel being scared every time he signs feels spot-on because that's exactly the opposite mindset from most acquirers who chase growth metrics. Interessting how the 5x EBIT floor discipline becomes self-reinforcing since future sellers wont accept lower, which basically makes valuation control teh entire moat here. If new management loses that fear and pays up even once or twice, the whole flywheel unravels fast.
Brilliant teardown of the whole Judges model. The part about Cicurel being scared every time he signs feels spot-on because that's exactly the opposite mindset from most acquirers who chase growth metrics. Interessting how the 5x EBIT floor discipline becomes self-reinforcing since future sellers wont accept lower, which basically makes valuation control teh entire moat here. If new management loses that fear and pays up even once or twice, the whole flywheel unravels fast.
Thank you, that’s absolutely right, the success of the business model relies entirely on managements discipline
It is a wonderful company which is priced appropriately right now
I agree!
Good summary. It was widely praised at the top as usual, but it is now much more interesting.
I have similarly entered SDI PLC back in the days after a large fall.
Love it!