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  • The impact of COVID-19 on the Facilities Management M&A market

The impact of COVID-19 on the Facilities Management M&A market

22 April 2020

In association with RICS:

Welcome to the latest edition of our report where BDO’s M&A Facilities Management team share their views of the COVID-19 situation facing the FM industry and provide an overview of the key Mergers & Acquisitons themes in 2019. We are pleased to be able to share insights from RICS on future workplace diversity and what this means for FM.

The year started well: the M&A market was underpinned by robust valuations and buoyant financing conditions. With the spread of COVID-19, the government has taken significant measures to fight the pandemic which has led to a slowdown in M&A activity in the immediate term.

It is clear, however, that the pandemic will continue to have disruptive and transformative consequences for both companies and the people they employ with many buildings moving into shutdown mode. The most immediate impact of COVID-19 for many will be a significant drop in sales and the key point is preserving cash.

During the pandemic, the FM profession has an essential role to play and we are immensely proud to see collective effort across the industry in stepping up to the challenge, providing mission critical support.

The effects of COVID-19 will lead to an inevitable slowdown in M&A activity in the immediate term. In connection with both existing deals and new deals, we expect that there will be critical questions around target valuations, which will require the parties to be flexible about purchase price and structure.

If you would like to discuss any of the issues please contact Satvir Bungar.

Visit our COVID-19 Hub