Looking forward to a new world for Facilities Management
06 March 2019
Welcome to the 2019 edition of our annual Facilities Management (‘FM’) sector report which provides an ongoing M&A market review and outlook for the coming year, insights on key topics and some of the biggest trends seen in FM. The sector as we have experienced it for decades is likely to transform to something very different in the future as businesses look to build long term partnerships.
How is M&A evolving?
The UK continues to attract investment from global specialist FM companies as they try to address challenges in local fragmented markets. Large strategic buyers were highly active mopping up smaller rivals and private equity investment was on the up as financial sponsors continue to hold dry powder to deploy. Those business models which have become technologically-enabled has resulted in valuations generally rising.
Does technology continue to spur M&A activity in 2019 and beyond?
After a strong year for deal activity in 2018, there is cautious optimism about the year ahead. Uncertainty continues to hang over the sector regarding Brexit negotiations and the UK’s smooth passage out of the EU. We are starting to see this impact due diligence processes which means calling the market for 2019 is no easy task. Having said that, the future for FM in the UK remains exciting as the race among FM operators to equip themselves with the technology required to remain competitive will spur M&A activity.