Why TICC still passes the investment case in 2026

The Testing, Inspection, Certification and Compliance (TICC) sector has been a fixture of private equity interest for a long time now, and as 2026 unfolds, its appeal remains intact. Long-term structural drivers continue to underpin the investment case: increasingly stringent regulation, rising safety and sustainability standards, and the critical role TICC plays across infrastructure, energy, manufacturing and consumer markets. Crucially, demand remains resilient, with low cyclicality relative to many industrial services sectors.

The market’s fragmentation continues to create fertile ground for buy-and-build strategies. Investors can scale platforms through selective acquisitions, enhancing technical capabilities, expanding vertical coverage and broadening geographic reach—often unlocking multiple expansion and operational leverage along the way. Exit routes remain well-defined, with sustained appetite from both strategic buyers and larger-cap funds.

What has evolved materially in recent years is the role of technology. Artificial intelligence, data analytics, robotics, drones and predictive maintenance tools are increasingly embedded across the value chain. Rather than replacing technical expertise, these technologies augment it—improving asset utilisation, data quality, compliance tracking and customer reporting. As a result, customers are raising expectations, favouring providers that demonstrate innovation, digital maturity and forward-thinking delivery models.

Alongside this, many operators are moving “beyond the test”, shifting towards integrated testing-and-servicing propositions that deepen customer relationships and improve revenue visibility.

Challenges remain, particularly for mid-market investors. The sector is increasingly bifurcated between small, niche specialists and large, scaled platforms, making the identification of an investable entry point at the right size and price more difficult. Valuations for high-quality assets also remain robust.

Therefore, businesses that can credibly position themselves as scalable TICC platforms—combining regulatory relevance, technological enablement and acquisition potential—are likely to remain in strong demand throughout 2026.

To discuss any of these themes in more detail, please contact:

Matt McNally

mmcnally@armstrong-ts.com
+44 7894 736 523