Healthy M&A momentum in the Testing, Inspection & Certification sector
The Testing, Inspection, Certification, and Compliance market is showing remarkable consistency in its merger and acquisition (M&A) activity. The industry is mainly dominated by big players and has done well in weathering the storm of macroeconomic instability, according to a new study from Oaklins.
Companies in the Testing, Inspection, Certification, and Compliance (TICC) sector provide specialized technical services that verify the quality, safety, and performance of products, systems, and facilities. They ensure businesses and governments comply with essential standards and regulations worldwide. These services are essential in a wide range of different industries, from automotive and commodities to food and pharmaceuticals.
M&A activity is steady in the industry. Much like over the same period last year, deal flow stayed consistent over the first eight months of 2025, which shows the sector’s reputation for stable fundamentals and steady company valuations.
The M&A landscape continues to be dominated by major industry players, which the Oaklins report calls ‘consolidators’. These large companies are the primary drivers of transactions, with the top 15 consolidators alone accounting for around half of all deals over the past year. Prominent names leading this acquisition charge include SGS, Phenna Group, SOCOTEC, Celnor, and Normec Group.
There were spikes in activity in January and July, a pattern that reflects the typical M&A calendar: Deals often launch after the summer and close early in the new year, or begin after the winter break and conclude during the summer months.
Valuations hold steady
Despite earlier worries about global financial markets, company valuations in the TICC sector have stabilized and shown resilience. While the TICC sector briefly saw a dip in 2023 due to rising interest rates and broad economic uncertainty, valuations recovered through 2024 and have remained consistently strong in 2025.
A key industry valuation metric remained steady at 11.6 times projected earnings in both January and August, demonstrating the market’s continuing appeal to investors. “It is this stability that underscores the TICC sector’s reliability when it comes to investment,” said Arjen Kostelijk, an M&A expert at Oaklins.
Focus areas emerge
Two specific areas within TICC saw elevated M&A activity: Legal & Industrial Metrology and Environmental Services.
In metrology – the science of measurement – deals included Bridgepoint’s acquisition of the Dutch firm NMi Group, which provides testing and certification for measurement instruments.
In the environmental sector, transactions highlighted firms focused on consultancy and compliance, such as the acquisitions of the Dutch consultancies Grondslag and Ortageo by Dutch company Sansidor.
Normec group leads the charge
The robust M&A trend is exemplified by companies like Normec Group, a leading consolidator. The company has aggressively expanded through a disciplined acquisition strategy paired with strong internal growth, securing significant market positions across Europe.
Looking ahead, Normec Group founder and CEO Joep Bruins noted that the company is very much focused on entering and growing in the US. market next. The ongoing acquisition strategy, according to Bruins, is entirely aligned with the company’s ambitious growth plans.
“Despite ongoing macroeconomic uncertainty, the TICC sector has once more proven its resilience, with consolidators remaining highly active, valuation levels remaining stable and investor confidence in sector fundamentals staying strong,” said Kostelijk.
