Facilities Management: M&A Hot Spot
The UK facilities management (FM) sector is undergoing consolidation, innovation and steady strategic evolution. The outsourced FM market is valued at £60–70bn, with forecasts suggesting CAGR of around 2.7–3.0% over the coming years.
Demand remains strong, particularly for hard services such as mechanical, electrical, plumbing and compliance-led maintenance, which continue to dominate service delivery. At the same time, soft services — including workplace experience, hygiene and occupant wellbeing — are growing in importance as organisations adapt to hybrid working, ESG requirements and changing employee expectations.
The sector is also increasingly technology-driven, with IoT, remote monitoring, predictive maintenance and smart-building systems improving efficiency, reducing energy use and supporting tighter sustainability and regulatory standards. For organisations with significant property portfolios, this presents an opportunity to revisit FM strategy: outsourcing is no longer just about continuity, but about optimising cost, compliance, workplace quality and environmental impact.
OUR SECTOR ACTIVITY
The UK Facilities Management sector continues to experience strong deal activity, driven by businesses with contracted, recurring revenues, high client retention, and resilient operating models. Buyers are placing a premium on FM companies delivering predictable cash flows through long-term service agreements, compliance-led offerings, and integrated hard and soft services. Technology-enabled platforms – incorporating asset management, compliance automation, workforce optimisation and ESG reporting – are also achieving higher valuations as acquirers seek scalable, data-driven solutions.
Private equity remains highly active in the sector, pursuing buy-and-build strategies to consolidate fragmented markets across facilities services, building compliance, and specialist technical support. KBS has a strong track record advising FM and compliance-led businesses, including FPR Group’s sale to Kingdom Group and OHS’s sale to Latus Group, demonstrating sustained investor appetite for well-run, scalable FM platforms delivering mission-critical services.

