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Entrepreneur Series – Interview with David Cicurel

February 26, 2018

 

 

Interview with David Cicurel

This month we get to know David Cicurel. David is an experienced entrepreneur and CEO of Judges Scientific, an AIM-quoted group that owns an impressive portfolio of some 12 scientific instrument businesses. With a current market capitalization of around £130m, the business is often cited as one of the real success stories in growing through a well-honed M&A strategy.    Back in 2016 Bluebox advised on the sale of CoolLed to Judges Scientific.

 

  1. Prior to setting up Judges Scientific, what was your background?

I spent most of my earlier life as a company ‘doctor’ performing company turnarounds in France, Switzerland and the US. However in the last 30 years, I’ve been here in the UK where I have been doing the same and then in the last 13 years I became involved with scientific instruments, mainly buying healthy companies and growing the portfolio of Judges Scientific.

Where are you originally from?

I am originally from France, but I spend most of my time in London as I find that France is not currently the best place to do business. I have no plans to go back except for holidays and to enjoy the wine!!

 

  1. What are the three most important things you have learned in the last decade of making acquisitions?
  • Be Respectful
  • Be Trustworthy
  • Be Disciplined

 

  1. In 2003, Judges floated on AIM. What were your motivations behind this?

The original purpose of Judges was to invest in ‘public to private’ targets.  I was trying to raise a significant amount of capital for investments, but this proved very difficult. I was raising capital mostly from family, friends and private investors so I choose to invest through a small AIM listed company instead.  This was more cost effective than having a fund and it is also meant the board of directors would have some freedom and not be tied with fund regulation.

 

  1. Over 10,000 readers will see this newsletter so let’s hear about the sectors you are interested in investing in and the criteria you will apply?

We are only interested in investing in Scientific instrument manufacturers. We want them to have a strong position in their global niche and a large proportion of their sales must be export. Ideally we like them to have operating margins of  25%. If anyone has a target then please do reach out.  Bluebox will assure you that we do not bite.

 

  1. Do you look for things to complement the targets you have currently acquired or branch out into different areas?

It’s always preferable if you can acquire a business that complements your other acquisitions but it’s not our main priority. Our main concern is to buy a good company with a lot of staying power and sustainable profits which we can buy at a sensible price. If the company happens to have some synergies with other portfolio businesses, it adds to the plus side, but it is not usually the main motivation.

 

  1. Are you very acquisitive at the moment?

We are always very acquisitive! We have done 16 deals in 12 and a half years. 2016 was a very good year for Judges as we bought four companies within that period including one from Bluebox!

 

  1. How do you feel that an adviser adds value to the business they are selling? Is it ever worthwhile approaching a buyer directly rather than via an intermediary?

From a seller’s perspective, an intermediary should give you a knowledge of the process, access to more potential purchasers and an ability to negotiate hard as they will be one stop removed from the ultimate purchaser. A sales process, whilst a simple concept, can become complicated and you may find that the right adviser can expertly guide you through this mine field.  

As an example, I met with a company a few years ago who had produced their Information Memorandum, were marketing the business on their own and were not represented by an Intermediary. At the meeting the CEO had presented the incorrect figures to me (he had the gross profit and EBIT margin mixed up) which made the company look like a mediocre target. However, when I questioned him further, I realised his error and luckily, we ended up acquiring the company after all. If he had had an Intermediary, they would have insured that the figures were correct from the start as if I hadn’t spotted the error, it would have been very unlikely that he would have been able to attract investor purchaser based on the published figures.

 

  1. What do you think are interesting sectors that you’re not involved with?

I think that two key sectors would be a) helping older people deal with technology as the world is becoming more reliant on tech and b) helping younger people get onto the property ladder. These are two needs that are not being universally met and there must be an opportunity to address them.

 

  1. If you had the chance to start your career over again, would you do anything differently?

I had this conversation with my Son recently and I would have liked to have spent a few years in a powerful city institution. Up until very recently, I have always found it difficult to raise money for acquisitions and investments. I think if I had a history in the city, with the right contacts I would have been more educated in how to raise the desired finance when it was required.

 

Quick fire

Favorite book? The Metamorphosis about a man who turns into a beetle by Franz Kafka. It is a very short but powerful book.

Favorite film? My Fair Lady

What car do you drive? 1988 Lotus

Three things to take onto a desert island? Bible, map and a helicopter

Describe yourself in one word.  Disciplined

 

 

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    “We were delighted with the services that Bluebox offered us. Bluebox’s attention to detail through their Diamond Programme ensured that we were well prepared for when the business was taken to market and that the sale process itself was managed expertly.

    We challenged Bluebox with finding the right strategic buyer and thereafter negotiating a deal that met our requirements. In helping initially to identify and to secure the deal with Mountville Mills they accomplished just that. Communication throughout was excellent and professional, managing each stage of the process. I would have no hesitation in recommending Bluebox to any corporate shareholder or private business owner looking to divest their business.”

    Richard Millward, Former Client

    “We were delighted with the services that Bluebox offered us. Bluebox were challenged with finding us the right strategic investor and, thereafter, negotiating a deal that met our complex requirements. In identifying and securing the deal with LGC they have done exactly that. The process itself was efficient and smooth, largely due to the excellent communication from the Bluebox team, who also demonstrated excellent experience at managing a very engaging auction process. I would be delighted to recommend Bluebox to any corporate shareholder or private business owner looking to divest a business.”

    Helen Dickinson, Former Client

    It has been a real privilege working with the team at Bluebox over this last year or so. Bluebox’s attention to detail ensured that we were well prepared for when the business was taken to market and the sale process itself was managed expertly. Starting the process, I had no idea exactly what this would entail and the volume of work that has been produced by everyone and the result reached today is nothing short of brilliant.

    Hugh Morris, Former Client

    We are delighted with the services that Bluebox was able to offer. They showed an intimate knowledge of a deal cycle, managed a tight auction process and were highly communicative from the start. I would happily recommend Paul and his team to business owners contemplating a sale of their business in the next 24 months. Experience is key and this has paid off for us.

    Laurence Seward, Former Client

    Aligning ourselves early with Bluebox, and entrusting the team to guide us through their process proved to be a highly rewarding investment from all viewpoints. Bluebox’s support significantly enhanced both the value of our business and its ‘saleability’. I would highly recommend Bluebox to business owners contemplating an exit in the next two years. The earlier the engagement the better so far as I am concerned.

    Mike Minett, Former Client

    We began working with Bluebox in early 2015 through their Blue Diamond Programme, as we were contemplating an exit. We found that the process focussed our minds on the key areas of growth in the business, and prepared us well for the inevitable rigours of due diligence. During the sale process itself, the advice offered by the Bluebox team was invaluable. We found them to be helpful, straightforward and honest.

    David Stokes, Former Client

    When selecting our adviser, it was extremely important that they had access to international buyers and were experienced in cross-border M&A. The team at Bluebox proved to be invaluable by identifying a strategic acquirer from America who was not known to us and by negotiating an excellent deal for all parties. I was also impressed with the process management from Bluebox, which ensured that the deal was closed in a timely fashion.

    Jeff Weinstein, Former Client

    When I first engaged with Bluebox, I was hesitant as to the benefits of using an advisor to firstly, find a buyer for my business and secondly, to get a deal over the line. However, now that the deal has completed with KPM, I can honestly say that the finer negotiation points handled by Bluebox and their overall management of this process has been nothing short of first class. I would be delighted to recommend Bluebox’s services to any entrepreneur contemplating the sale of their business.

    Bill Ballard, Former Client

    Bluebox worked closely with us over the following six months and helped us to implement some key initiatives which made InferMed a more attractive acquisition target. Once we decided to sell the business, the Bluebox team were very diligent in ensuring that no stone was left unturned. They negotiated expertly on our behalf to ensure we got the best deal possible.

    Alan Montgomery, Former Client

    The pre-sale planning programme that we signed up for with Bluebox made us develop our strategies and focus on the bigger picture. It proved to be a very rewarding investment from all viewpoints and significantly enhanced both the value of our business and its ‘saleability’. I would highly recommend Bluebox to business owners contemplating an exit in the next two years.

    Nigel Parsons, Former Client

    I have experienced first hand the value that can be created through highly structured pre-sale planning. It amazes me that it is not something that everyone does. It is so disappointing to see around 90% of transactions collapse before they complete and pre-sale planning will not only enhance your price, but also significantly enhance your chance of a closed deal.

    James Caan, Investor

    We worked incredibly closely with our advisers who provided expert knowledge of the sale process with which we were not familiar. We were truly delighted with the results.

    Marten Nielson, Former Client

    We appointed advisers to manage the sales process after we had received a number of unsolicited approaches for the business. I was incredibly impressed by the immense value that could be created by expertly negotiating with a group of already interested parties.

    Paul Duckworth, Former Client

    I was delighted with the service that the team offered and their real attention to detail. The deal was not without its complexities and it was reassuring to have such experienced advisers assisting me throughout the negotiations.

    Peter Bennett, Former Client

    Truly delighted with the way my sale process was managed. The fact that the team I worked with achieved such a great multiple is testament to their experience and their ability to create some true competitive tension.

    James Averdieck, Gü, Former Client

    The team at Bluebox provided invaluable support in negotiating this complex transaction. Their access to international purchasers, and exceptional knowledge of cross border M&A ensured that the deal was concluded efficiently, achieving a highly successful outcome for us all.

    Jon Parslow, Former Client

    “We selected Bluebox after a fairly long round of evaluating potential advisors because of their scientific, yet challenging approach to maximising value. During our initial meetings they showed us how far short of “ready” we were and consequently we completed more preparation in the early stages which meant we were equipped for what was to come. We were delighted with our choice of Corporate Finance partner. I do not hesitate in recommending Bluebox for any SME to consider.”

    Simon English, Former Client

    Bluebox provided invaluable advice in managing the negotiations with incoming investors. Their skills in handling these discussions were evident from the outset and the vital interface that they provided between the incumbent team and the incoming investors was truly beneficial.

    Henry Braham, Former Client

    Bluebox have a professional, dynamic and experienced team that is greatly assisting me with my focus on my exit within the next 24 months. Their structured approach is very refreshing and their ‘Blue Diamond’ programme is adding immense value.

    Matt Evans, Former Client

    The team at Bluebox provided me with a seamless service from the start of the engagement until our deal was completed. Attention to detail was commendable and their understanding of corporate M&A very impressive. I could not recommend them highly enough.

    Victor Lewis, Former client

    Having tried to sell my business previously – and failed – I was only too aware of the importance of pre-sale planning. This is a talented team offering a service that most people find out about, but too late.

    Simon Hulme, Former Client

    Bluebox are a quality outfit. Their access to International acquirers and relationships with the highest quality domestic investors was impressive. My shareholders and I received excellent service from start to finish and it was refreshing to be dealing with a senior team throughout the sale exercise.

    Michael Clapper, Former Client

    I cannot recommend the team at Bluebox highly enough. Their expert guidance throughout the entire sale exercise resulted in my shareholders securing an excellent deal with which the entire team was delighted.

    Mark Rodol, Former Client

    I’m really pleased with the service Bluebox provided. The team demonstrated excellent knowledge of the process to follow and led negotiations for the hospital in a way that allowed us to ensure we received appropriate value whilst focusing on reputational risk. Communication and service were of a very high standard.

    Steven Davies, Former Client

    With Bluebox’s expert advice we were able to find the right buyer that will benefit our business strategically. We’re delighted with the outcome and look forward to starting our new chapter

    Clive Hillier, Former Client

    The advice offered by the Bluebox team throughout the process was invaluable to the shareholders. We strongly believe that participating in Bluebox’s pre-sale planning programme was a significant driver behind the success of the deal. Their project management and negotiation skills throughout the sale process itself resulted in an exceptional deal being delivered to all parties involved.

    Harpal Singh, Former Client

    I chose Bluebox because they were the only CFA we considered who were a real ‘solution sales’ organisation rather than a team of accountants and/or ex-bankers! Selling a business is a solution sell and therefore a sell-side CFA requires this skill at its core.

    Jeremy Harford, Former Client

    Bluebox were a full solution in every respect. As an example, I never spoke with any of the potential or actual buyers directly. This separation allowed Bluebox to do what they do best which is to sell companies for the best price and on the most favourable terms.

    Jeremy Harford, Former Client