Test and Measurement
When certainty is essential
The Test and Measurement (T&M) sector is an industry that remains highly fragmented, focused on both the development and production of equipment designed to detect, measure and control a variety of factors in manufacturing processes such as power, flow, temperature and vibration to name but a few and includes Testing, Inspection & Certification (TIC).
The sector has been growing strongly and is forecast to continue to do so. The factors fuelling this growth are:
- Increased regulation, industry standardisation and sophistication
- Globalisation and increasing industrial output and innovation
- The ever increasing complexity of products, materials and supply chains
- A continuing need for efficiencies and cost reduction in the production process
- An increasing ‘cost of failure’
The sector has been propelled into the spotlight in recent times, firstly with the horsemeat food contamination scandal in 2013 and latterly with the VW emissions scandal. Such incidents present numerous challenges and opportunities not only for those companies involved, but also the supply chain whose products and services are accredited or tested.
Our sector research, focussed on the M&A market, over the past year has highlighted this fact. Recently, on the back of the emissions scandal, we have seen a keen focus on automotive M&A opportunities which provide capabilities in:
- Testing of key product areas
- Manufacturing of components that provide better fuel efficiency controls and emissions reduction
Compared to the rest of the world, the UK is the second most active M&A market.
Our understanding of the key factors affecting companies operating in this industry coupled with in-depth knowledge of the market players and the subsectors in which they operate, positions BDO ideally to assist you with the opportunities and industry issues that you face.
Our regular communication with key industry bodies further enhances the insight that we can provide to clients.
BDO provides an integrated, full service capability to firms across the whole of the industry. We work closely with clients to find solutions to industry issues and our sector team utilises our expertise across the firm in everything from audit and tax advice, to corporate finance and business restructuring.