Intertek, a global provider of assurance, testing, inspection and certification services, finds its valuation squeezed by geopolitical turbulence. The firm recently turned down a third bid from private‑equity group EQT, citing concerns that the so‑called “war effect” could distort deal multiples. Investors watch closely as risk premiums shift across the industrials sector in the current market environment today.

Houlihan Lokey’s industrials group, led by Managing Director Géraud Estrangin, warns that defense deals now carry higher valuation disconnects. “War‑related risk premiums” complicate the calculation of multiples, especially when suppliers and clients face supply‑chain constraints and policy shifts. The firm’s analysis underscores a broader trend of volatility in capital‑intensive industries for buyers and sellers navigating uncertain geopolitical currents.

EQT’s rejection signals a cautious approach as private‑equity buyers reassess returns against rising risk. For Intertek, the move preserves valuation flexibility while the company positions itself amid heightened scrutiny on defense‑related revenues. Market participants now weigh whether the “war effect” will trigger a lasting re‑pricing of industrial services firms in the near term and beyond for long‑term investment strategies.