The Biggest & Best Portal to the Professional Property, Workplace and Built Environment Community

Sunday, 25 February

British FM Expertise Fuels M&A Activity

The UK building and facilities services sector has grown by £15 billion since 2011, with a total UK market value of £125 billion in 2016, according to the latest research from Livingstone, the international mid-market merger & acquisition and debt advisory firm.

Livingstone’ analysis also shows a resurgence in M&A activity over the past 5 years, with a 96% increase in overall deal activity occurring since 2012, from 26 transactions to 51 in 2016 - and over 20 deals already made so far this year, nearly as many as were made in the entire of 2012.

The results point to a degree of resilience within the M&A market despite the political and economic uncertainty associated with geopolitical changes such as Brexit. Furthermore, the analysis points to renewed foreign interest in UK assets associated with the building and facilities services sector incentivised by a stable economy and weak pound. Examples of transactions include Land Engineering by Idverde this month, Westway by ABM and Trios group by SPIE.

Hard facilities services, such as maintenance, refurbishment and mechanical services have made up the majority (59%) of M&A activity over the past 5 years, with Mechanical and Electrical (M&E) being the most popular sub-sector, accounting for 29% of deal volume over the period. There has been a large spike in M&E transactions in the past 2 years especially, with 43 deals being made in 2015-16 compared to just 23 for the period of 2012-14.

Jeremy Furniss, Partner at Livingstone, said on the findings: “The M&A markets have demonstrated great resilience in the face of daunting levels of uncertainty driven by the slew of geopolitical developments, not least of which is the growing reality of the UK operating outside of the EU.

“In many ways, this should not surprise us. The UK has always enjoyed a head-start in developing innovative solutions which the rest of the world has increasingly shown interest in accessing through acquisition. However, as the pressure to address escalating employment costs and regulatory scrutiny grow, the UK’s talent for innovation and creativity will have to rise with it.

 “For the time being though, the UK’s place as a facilities and services market of strategic interest to the rest of the world is likely to sustain deal activity well into the foreseeable future.”

Picture: Jeremy Furniss, Partner at Livingstone

Article written by Brian Shillibeer

Share



Related Articles

Lights, Camera Action - It's FM Digest time

Sodexo wins 10-year deal with Farnborough International Farnborough International Exhibition & Conference Centre has given Sodexo a 10-year contract, £30...

 Read Full Article
Innovation Boosts FM Market in 2017

A new report on the UK facilities management market has found a softening of growth in outsourcing demand as Brexit jitters continue, though forecasts remain above GDP...

 Read Full Article
Ring-a-ring O' Ringrose's, A-tishoo! A-tishoo! Shares Fall Down

“Despite the increased political and macro-economic uncertainty following the UK’s EU referendum and recent general election, our outlook for the current year...

 Read Full Article
A Connected Disconnect?

Mitie has made its preliminary announcement of results for the year ended 31 March 2017 under the banner 'Moving Beyond FM to the Connected Workspace'. Some...

 Read Full Article
Old Dutch Spawns New Masters - Imtech UK and Ireland Results Show Resolve

Imtech UK and Ireland has released its first set of figures since the Group emerged from the buyout from its failed Dutch parent company. The figures cover the period...

 Read Full Article
How Mitie Have Fallen

Mitie have announced half-yearly results for the six months ended 30 September 2016 which show big losses and profits warnings. This has slammed the company's shares...

 Read Full Article
Mitie in the Mire as Profits Warning is Issued

The week, ending Friday September 23, Mitie Group plc issued a trading update statement and in so doing has caused its own shares and that of some competitors, to plunge...

 Read Full Article
Imtech Survives on Endless Credit

Imtech UK has announced (Tues 01 Sept) that it has concluded a deal to refinance its business through an investment from private equity firm Endless LLP. The...

 Read Full Article
Dutch Auction - Imtech Bankrupt but Hopes for Sell-off

It was reported earlier this week that Imtech had gone into administration. In fact, it is the Dutch parent Royal Imtech N.V. that is in trouble and yesterday, declared...

 Read Full Article
Rough Ride Ahead for Alton Towers' Merlin

The serious accident at Alton Towers theme park, Staffordshire, in early June has had a dramatic impact on owner, Merlin Entertainments', trading performance. When...

 Read Full Article