Testing, Inspection, Certification (TIC) services

The TIC (testing, inspection, certification) market is characterised by a number of trends including a proliferation of standards and regulations, increased complexity of procedures, control technologies and insurance, a sustained consolidation of suppliers, added to a growing interest from customers and users for safety and social responsibility, all driven by the phenomenon of globalisation.

What are my main challenges in the TIC market?

Your challenges
Our Offer

What are my main challenges?

You are in senior management at board level or responsible for strategy, business development, or country manager, or a Private Equity fund looking to invest in the TIC sector?

Challenges:

Successfully execute my growth strategy in Europe
Expand my TIC offer as a result of organic growth or acquisitions
Develop a unique and specialised offering
Deliver my external growth / M&A strategy
Build a presence or network at the national or European level
Develop my presence throughout the Supply Chain
Enter new sectors (agri-food, pharmacy, energy, transport, construction & infrastructure, etc.)
Anticipate the entry into force of new standards or the possible outsourcing of certain controls
Integrate technical innovations and accelerate the digitisation of traditional TIC services
Create and develop partnerships (services, technological, geographical)

What solutions are available to me?

In order to meet these challenges, we provide:

Market analysis
Evaluation of growth opportunities and understanding of customers’ expectations
Analysis / Competitive benchmarking
Development of business plan
Research and identification of acquisition targets or strategic partners
Deliver strategic Due Diligence - Commercial Due Diligence
Corporate Development Support / Mergers & Acquisitions
Post-merger integration planning.

Business cases

Leading provider of marine classification and offshore verification services

Challenges

This client wanted to strengthen its position in the North Sea area and was looking to develop a growth strategy to acquire complementary services with a strong regulatory content as well as innovative technologies for modeling and simulation.
The client quickly decided on a strategy based on M&A because of the complex nature of the skills and experiences that were sought.

Approach

After a review of a variety of existing and emerging regulations (Water Ballast Monitoring, Emissions Verification), Victanis investigated the specific compliance and verification needs of markets including subsea, marine renewables, integrity management of complex assets, and decommissioning of offshore platforms.
This preliminary work allowed the identification of the technical 'niches' on which to focus.

Results

Definition of the main strategic goals for the acquisitions
Identification and selection of acquisition targets in the UK, the Netherlands, Germany and Norway
Pro-active approach of these targets and assistance with the entire transactional process
3 acquisitions completed between 2014 and 2016.

International group based in the United Kingdom and specialized in the production of testing and certification standards, and the delivery of training and auditing services

Challenges

Our client wanted to enrich their existing proposition with the development or acquisition of strong competencies in the areas of food safety, information security, business resilience and supply chain sustainability

Approach

Review of the latest regulations and business needs to better ensure the resilience of their supply chain and the protection of their data and communications
Market studies (growth prospects, competitive intensity, ...)
Primary research by leveraging Victanis’ network of industry contacts

Results

Map of attractive opportunities in Europe and in the United States
Detailed screening of targets
2 acquisitions completed since 2016

M&A STRATEGY AND CORPORATE DEVELOPMENT SUPPORT TO A LEADING PROVIDER OF RISK MANAGEMENT AND COMPLIANCE SERVICES TO THE CONSTRUCTION AND INFRASTRUCTURE SECTORS

Challenges

Following its acquisition of Environmental Scientific Group in 2017, UK’s leading provider of TIC services in the Construction and Infrastructure sector, Socotec looked for a sector specialist to advise on its growth strategy and to help source bolt-on acquisitions in the UK and in Europe more generally
Socotec was also keen to leverage on its long history of providing building control services in France and to benefit from the opening of building control markets in Europe

Approach

Trends and market analysis of the building control industry in the UK
Introduction of Socotec to a variety of corporate finance advisors active across the Testing, Inspection and Certification as well as the Construction, Infrastructure and Property markets
Robust screening of a large number of UK based providers of management system certification services, building control services, health, safety and environmental consulting services
Organisation of a series of meetings with carefully selected acquisition targets to seek off-market transactions as a priority

Results

Socotec now perceived and positioned as a trustworthy acquirer in the UK providing sellers with good deal certainty
Three acquisitions were successfully completed in 2018 and 2019 across three different and complementary sectors
Acquisition of AJA Registrars in March 2018 to expand Socotec’s certification business
Acquisition of 4See limited in June 2018
Acquisition of Butler & Young Group in April 2019

A COMPANY AT THE FOREFRONT OF DEVELOPING NEW DRIVER-IN-THE-LOOP (DiL) SIMULATION PLATFORMS AND SOFTWARE FOR USE IN VEHICLE ENGINEERING, TESTING AND R&D

Challenges

Our client, Spectris, was a testing generalist with a recent investment in automotive testing. As such, simulation was a significant departure for the company and something they did not know a lot about.
VI Grade was also a small company (<€10m) and its market was one that was at a very early stage of development, with less than 40 units in use worldwide.
Although currently a very small market, the potential for growth was considerable. Therefore our client was anxious to have a more detailed understanding of potential growth as well as a strong analysis of the strength of competitive drivers and the evolution of a limited number of competitors.

Approach

Develop and comprehensive and dynamic model that included all potential OEM and Tier 1 automotive customers to map various scenarios in order to show the range and possible scale of growth over 5 years.
Widespread interview programme speaking to engineers, simulation experts and other stakeholders in order to garner as many views as possible to give guidance as to how a very nascent market might develop and according to what timetable.
Identification of 5 other main competitors and analyse their partnerships, early contract wins and rank them as competitive threats relative to VI Grade.
Assisted by ex-MacLaren simulation expert.

Results

A comprehensive market model covering all potential and actual customers, different types of simulator and forecasting the range of potential growth over 5-10 years.
Report that gave excellent granularity on the receptiveness and planning of the OEM engineering departments as well as other future developments and views of various competitive products.
Detailed understanding of the competitive environment and where VI Grade sat within that.
Spectris completed the acquisition of VI Grade in July 2018 after two phases of CDD delivered by Victanis.

STRATEGIC VENDOR DUE DILIGENCE OF A LEADING PROVIDER OF PHYSICAL OPERATIONS SOFTWARE AND DATA SERVICES FOR THE COMMODITY TRADING, TESTING AND INSPECTION INDUSTRY IN PREPARATION OF A SALE PROCESS

Challenges

Established in 2000, Navarik provides SaaS solutions to the global shipping community in order to optimize the way physical trade operations data is captured, analysed, managed and delivered.
In January 2018, Navarik launched TICit Hub, the only recognised solution that connects seamlessly shippers and traders with providers of commodity testing and inspection services. TICit Hub is suited to all commodities including oil, petro-chemicals, mining and minerals and agricultural products.
As part of its preparation for a sale process, Navarik asked Victanis for real market insight to help craft the story of how TICit Hub can disrupt the TIC industry from both a qualitative and quantitative perspective.

Approach

Introduction of Navarik to the global TIC market and the more specific Commodities Testing and Inspection Market
Sourcing and validating key market data in relation to the global market for commodities inspection and testing services with a particular focus on the supply side of the market
Description of the main international commodity trade flows across regions
Organisation of a series of interviews and meetings to test the market’s reaction to TICit Hub with the support of Navarik’s management
Quantitative Modelling to estimate the size of the potential addressable market for TICitHub.

Results

Robust contribution to Navarik’s Information Memorandum for the future sale of the company to a mix of providers of Testing, Inspection and Certification (TIC) services, financial investors and other business services organisations.
A comprehensive ‘bottom-up’ sizing of TICit Hub market opportunity (“Quantitative Analysis”) across the commodities inspection industry was produced as well as a robust quantitative model Excel model
TICit Hub’s Business Plan for the period 2019-2023
A well-substantiated narrative to drive positive value perception during the proposed future sale process of Navarik.