(Photography by Beverly Lloyd-Roberts).
Fuelling Mergers & Acquisitions
The current UK facilities management (FM) market is one of the most challenging ever for outsourced service providers. Relationships are becoming more strategic and less transactional which presents opportunities for investment to innovate and drive change, according to research by accountancy and business advisory firm BDO LLP.
BDO’s latest Facilities Management UK Market Outlook report provides insights into how FM is evolving from a “people” business to a “people and data” business.
M&A analysis of the sector reveals that just over half of deals completed in the last two years involved businesses in the building management systems, M&E and compliance services sub sectors, signalling growing opportunities in regulatory-driven markets and exciting developments in building technology which will revolutionise service delivery.
A number of deals contributed to the trends identified in the research, such as the acquisition of technical engineering services business Westway Services Ltd by US-based ABM Industries Inc, ENGIE SA’s acquisition of digital energy management specialist C3 Resources Ltd to build predictive maintenance capabilities, and Laudrapp Ltd’s acquisition of Washbox Ltd to meet demand in the rapidly evolving on-demand laundry market.
The report by BDO examines changes in business models operating in the facilities management industry and developments in the M&A market.
Satvir Bungar, Head of Facilities Management at BDO LLP, commented: “Despite the pressures faced by FM players, businesses have muted optimism for the year ahead and see a wealth of opportunities including stickier contracts, developing strategic relationships, and initiating new service lines. FM operators are embedding themselves more closely in their client organisations to provide valuable data-led services such as predictive maintenance, asset management and space optimisation services.
“It is also interesting to see new listed entrants, such as Marlowe plc and Bilby plc, which are undertaking buy and build strategies to build market share. Market consolidation is inevitable; there is a great opportunity to add both technological solutions and geographical presence, while the possibilities derived from smart data analysis are fundamentally changing the industry.”
Visit www.bdo.co.uk for additional information.