A new survey into M&A appetite in the Facilities Management
industry has revealed a modest slowdown in the sector as FM groups
digest and integrate the large number of acquisitions completed
350 leading players in the sector – all the public companies
and leading private groups that have made acquisitions in the last
five years – were contacted to compile the 2005 survey, the
second to be published by Livingstone. The research, shows that the
overall outlook remains positive, with the vast majority of
respondents claiming to be actively acquisitive and most of them
The depressed level of FM M&A activity was evident from the
number of acquisitions completed by respondents in the last three
years. Last year 80% had completed one or more acquisitions; this
has dropped to 66% while those able to boast completion of three or
more deals has fallen from 60% to only 20%. This suggests that
there has been a significant fall-off in acquisition activity among
Nevertheless, 87% of those surveyed remain interested in making
acquisitions in the sector, although this does compare with a
remarkable 100% interest last time.
A total of 29% of respondents to the 2005 survey regarded
themselves as ‘very’ acquisitive, compared with 33% in
2004, and 42% were ‘opportunistic’. However, the
remainder of respondents were less certain of themselves in 2005
than 2004: 29% of respondents were either ‘passive’
acquirers or not interested in making acquisitions at all.
The good news for advisers is that 95% of respondents in 2005
claimed to use external advisers compared to 86% in 2004, no doubt
in some part due to there being less in-house resource.
The survey covers: – Service areas of greatest interest; – Key
factors in assessing a potential acquisition; – Property sectors of
greatest interest; – Company valuations; – Ease of deal completion;
– The threat of private equity investors and – The selling of
A PDF of this survey can be downloaded free from this website.
Please select publications, sector brochures.
Jeremy Furniss, Partner
Tel: 020 7474 4703