SGS

Testing, Inspection & Certification

SGS built the world's largest testing and certification empire ($7B+ revenue) on a simple insight: when buyers and sellers don't trust each other, they'll pay for neutral verification. Founded in 1878 to inspect grain shipments, SGS now operates 2,600+ labs and offices in 100+ countries, testing everything from food safety to industrial equipment to environmental compliance. The company profits from information asymmetry - sellers know product quality, buyers don't - by providing credible third-party validation. In international trade where legal recourse is difficult, SGS certification reduces transaction costs enough that both parties willingly pay for it. This is biological mutualism: SGS prospers by reducing friction between organisms that would otherwise struggle to cooperate.