Testing, Inspection, and Certification Services

October 2017


The global Testing, Inspection, and Certification ("TIC") industry continues to grow, with a recent report from Market Research Engine estimating the market will grow more than 5% annually to $285 billion by 2024. M&A within the sector has been active in 2017, including Eurofins Scientific's $780m deal for EAG and Element Materials Technology Group's $1b acquisition of Exova, among approximately 100 smaller transactions so far this year. M&A is likely to remain active in this consolidating industry amid anticipated market growth.


Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants