Testing, Inspection, Certification (TIC): Industry and M&A Report
The M&A market for TIC has become highly favorable for sellers, as trade-buyers target external growth, and PE opt for aggressive ‘buy-and-build’ growth strategies.
This sector note, issued in November 2015 by Capitalmind, outlines key segmentations and growth trends within the testing, inspection and certification industry, and identifies the drivers behind M&A activity in the sector moving forward.
Key observations from this research:
- TIC industry is characterized by high growth rates, double-digit operating margins and reliable non-cyclical revenue streams – a rare blend of factors that make it attractive to investors.
- ‘Digitization’ has become a game-changing industry disruptor.
- The M&A market is dominated by the top 12 market leaders, who together have closed more than 350 deals since 2010.
- The industry is widely fragmented.
- Transaction multiples on average stand at 7.5x EBITDA for small-caps, and 10x EBITDA for mid-caps, driven by strong demand from both trade-buyers and PE ‘buy-and-build’ platforms.
The full report is available, for free, on request by sending a mail to the TIC team