KBS - Facilities Management - Market Insight

FACTORS DRIVING HIGHER VALUATIONS AND EBITDA MULTIPLES In the UK Facilities Management space, we have seen deal values that have been calculated on adjusted EBITDA/ earnings multiples ranging from 5–6x to double-digit figures, depending on various factors such as the quality and predictability of recurring revenue, customer retention rates and overall growth trajectory.

Key factors influencing value have included:

• The quality, length and predictability of contracted revenue, especially where multi-year frameworks or IFM agreements are in place.

• The mix of hard vs soft FM, with M&E, compliance, fire safety, energy management and technical maintenance commanding higher multiples.

• Client concentration and sector exposure, particularly where contracts span regulated or critical infrastructure environments such as healthcare, education, utilities or defence.

• The breadth of accreditations and technical capability, including CAFM systems, remote monitoring, IoT integration and ESG/energy-efficiency expertise.

• Scalability and geographic reach, with acquirers paying a premium for platforms that support buy-and-build growth.

• The strength of the management team and operational processes, including workforce retention, training and service delivery standards.

Industry Market Share by Company Combined Facilities Support Activities in the UK Industry-specific company revenue as a share of total industry revenue

Mitie FM Ltd (£1.2bn)

6.2%

ISS Facility Services Ltd (£831.1m)

4.4%

Emcor Group (UK) plc (£326.5m)

1.7%

CBRE Ltd (£235.7m)

1.2%

Other Companies (£16.4bn)

86.5%

Source: IBISWorld