{"id":5888,"date":"2018-02-14T00:00:00","date_gmt":"2018-02-13T23:00:00","guid":{"rendered":"https:\/\/staging.capitalmind.com\/testing-inspection-certification-sector-report\/"},"modified":"2019-03-25T14:34:19","modified_gmt":"2019-03-25T14:34:19","slug":"testing-inspection-certification-sector-report","status":"publish","type":"post","link":"https:\/\/dev2.capitalmind.com\/fr\/testing-inspection-certification-sector-report\/","title":{"rendered":"Testing, Inspection &#038; Certification &#8211; Sector Report"},"content":{"rendered":"<p><strong>TIC valuations at historic highs. For how much longer?<\/strong><\/p>\n<p>The M&amp;A market for Testing, Inspection, Certification (TIC) has become even more favorable for sellers: a large number of transactions and valuation multiples are at historic highs, as trade-buyers target external growth and Private Equity (PE) eagerly pursue buy &amp; build projects. We expect buy-side demand to remain extremely supportive in what is still a widely fragmented industry, where all of the large and mid-sized players are targeting double-digit growth rates.<\/p>\n<div>\n<p>Key insights:<\/p>\n<ul>\n<li>Globally, it is full steam ahead for the M&amp;A market thanks to a pickup in economic activity, a wider availability of low-cost financial debt (mostly \u2018bullet\u2019 and \u2018covenant light\u2019) and the growing presence of PE firms in the market.<\/li>\n<li>The TIC sector is especially hot and seeing historically high returns for investors, due to extremely strong and resilient industry fundamentals.<\/li>\n<li>Together the top 12 market leaders have closed more than 500 transactions since 2010. Interestingly, most are also embarking on strategic reviews to define 5-year plans: tapping new growth areas, developing and streamlining organizations (eg. digital capabilities) and considering divestments of single digit EBIT-margin businesses.<\/li>\n<li>PE funds are aggressively seeking buy &amp; build projects in the mid-market, where many dynamic high-growth companies with revenues of \u20ac10m to \u20ac100m are emerging. Around 70% of all TIC\u00a0 companies with revenues of \u20ac50m to \u20ac1bn are already owned by financial investors.<\/li>\n<li>Listed players are being valued at 16x EBITDA, on average, while transaction multiples have increased by 10% to 20% over the last three years &#8211; at 8x EBITDA for small-caps, and 11x for midcaps. Digitalization is a game-changer, and making a big impact on the customer offer.\u00a0 The industry is moving away from traditional legacy control and inspection services towards more sophisticated\u00a0 and integrated solutions.<\/li>\n<li>In the current market environment the hottest segments for acquirers include building &amp; infrastructure, which are both back on track; security; health &amp; safety; energy efficiency; and also food &amp; pharma.<\/li>\n<li>We expect the M&amp;A market for TIC to be even more active in 2018, as the industry tackles digital transformation and the bullish fundamentals continue to improve.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TIC valuations at historic highs. For how much longer? The M&amp;A market for Testing, Inspection, Certification (TIC) has become even&#8230;<\/p>\n","protected":false},"author":55,"featured_media":7812,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3800],"tags":[3830],"news-event-type":[],"dealtype":[],"blog-tag":[],"class_list":["post-5888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sectornews-fr","tag-tic-fr","ps-services-professionnels-fr"],"acf":[],"_links":{"self":[{"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/posts\/5888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/comments?post=5888"}],"version-history":[{"count":0,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/posts\/5888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/media\/7812"}],"wp:attachment":[{"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/media?parent=5888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/categories?post=5888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/tags?post=5888"},{"taxonomy":"news-event-type","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/news-event-type?post=5888"},{"taxonomy":"dealtype","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/dealtype?post=5888"},{"taxonomy":"blog-tag","embeddable":true,"href":"https:\/\/dev2.capitalmind.com\/fr\/wp-json\/wp\/v2\/blog-tag?post=5888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}