Serial Acquirers — What Are They? And How Can You Profit?

Dividend stocks, tech growth companies, turnaround plays…

These are all investment models which are well-covered in the financial community. Meanwhile, serial acquirers are consistently ignored. And that’s a shame, because these businesses follow the “Warren Buffett Plan” of buying up smaller companies and turning themselves into diversified conglomerates.

In today’s article, I’ll explain what a serial acquirer is.

And I’ll share two real-world, publicly traded examples.

Here we go!

What Is A Serial Acquirer? And Why Should You Care?

Serial acquirers have significant financial resources, management expertise, and industry connections that allow them to buy a moderately successful business and grow it into a lucrative subsidiary.

While there are conglomerates like Berkshire Hathaway that own everything from carpet-makers to Coca-Cola, most serial acquirers focus on a specific niche.

This might sound a little vague or generic, so I’ll provide two examples.

One in the scientific devices industry, and the other in the tech space.

Serial Acquirer #1: SDI Group plc ($SDIIF)

SDI Group operates in the scientific equipment niche. They buy small-but-essential manufacturers of highly technical devices, and then grow these companies.

To give some examples of businesses in the SDI Group portfolio, the firm owns:

• Monmouth Scientific Limited — The UK’s leading designer of fume cupboards and biological safety cabinets.
• Atik Cameras — Maker of specialty, cooled CCD cameras. These are the devices used to take deep-space images of objects that are light years away (you can see some of the photos on the company website, here).
• Synbiosis — Manufacturer of “Automatic Colony Counters.” These are instruments that scientists use to measure the number of bacteria in a…