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

WHAT EBITDA MULTIPLES ARE BEING ACHIEVED FOR COMPLETED COMPANY SALE TRANSACTIONS? In the UK and global TICC sector, EBITDA multiples for company sales typically range from 7x to 15x , depending on the company’s niche, accreditation status, customer base and level of recurring revenue. Key valuation trends include:

+ PRODUCT TESTING & QUALITY ASSURANCE FIRMS:

Businesses offering material testing, non-destructive testing (NDT) and laboratory analysis typically trade at 8x-14x multiples, with higher valuations for accredited and specialised labs.

+ ENVIRONMENTAL & SAFETY INSPECTION PROVIDERS:

Companies focused on air quality testing, emissions control and workplace safety audits tend to see 7x-13x multiples, depending on regulatory demand and contract stability. + CERTIFICATION & COMPLIANCE ASSESSMENT FIRMS Businesses providing ISO certifications, food safety audits and industry-specific compliance checks command 8x-15x multiples due to their high-margin, accredi-tation-based business models. + CONSTRUCTION & INFRASTRUCTURE INSPECTION FIRMS: Companies specialising in structural integrity assessments, fire safety inspections and building compliance tend to achieve 7x-12x multiples, with growth driven by regulatory enforcement. + OIL, GAS & INDUSTRIAL TESTING FIRMS: TICC companies serving energy, petrochemical and industrial manufacturing sectors can see 9x-15x multiples due to high regulatory requirements and specialised expertise. + MEDICAL & PHARMACEUTICAL TESTING PROVIDERS: Businesses conducting clinical trials, medical device testing and pharmaceutical compliance assessments achieve 10x-15x multiples, reflecting strong growth in healthcare regulations. CURRENT TRADING MULTIPLES (EV/EBITDA) OF LISTED TICC COMPANIES

15.0x 13.7x

13.2x 9.5x

11.3x 10.6x

12.9x 11.7x

10.8x 9.3x

12.0x 10.9x

12.4x 10.7x

14.2x 12.2x

16.3x 11.5x

8.7x 7.6x

EV/EBITDA LTM

EV/EBITDA NTM

LTM median (12.6x)

NTM median (10.8x)