KBS - Testing, Inspection, Certification & Compliance - Market Insight

MOTIVATIONS OF TRADE ACQUIRERS AND CONSOLIDATORS IN THE TICC SECTOR In a recent survey, 46% of energy leaders reported they are planning for acquisition or divestment in the next 12-18 months, to help achieve strategic goals and accelerate investment. There is also desire for R&D in new areas aligned to decarbonisation, including carbon capture and renewables, or to refocus portfolios on core assets. Moreover, firms committed to sustainability practices, e.g. decarbonisation and circularity, have demonstrated higher shareholder returns. Firms are looking to expand their core capabilities and expand in other markets, and M&A allows for quick inorganic growth through acquisitions of firms that already specialise in a certain domain, e.g. ESG firms are able to gain market share, position themselves as leaders in the space and meet the increased demand for regulatory compliance. Furthermore, firms that have specialised software or technology are in high demand. To navigate the complexities in environmental reporting and analyse large datasets, AI and the IoT is utilised widely. However, firms with platforms or in-house software add to the value and expertise of potential acquirers - for example, the acquisition of P2 Energy Solutions by IFS.