SAZUN BLOG
Dezember 9, 2019

Industry Insight Facility Management

“Welcome to our latest Facility Management Industry Insight. We expect that the facility management market will show rapid growth in emerging countries and that tech will disrupt established business models in mature markets. Taking a look at latest transactions, we see geographic expansion, new product development and integration of value-add services driving M&A considerations.”

Market Insights
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Market Size

Total FM Market 2018
Market share by segment (%)

Forecast 2018 – 2024
Market share by segment in EUR b

  • The global facility management (FM) market, comprising in-house FM and outsourced FM, was valued at EUR 1,071b and is expected to grow up to EUR 1,221b by 2024 with a CAGR of 2.2%. The global market owes its growth to ongoing urbanization and industrialization
  • The current split of in-house to outsourced services is approx. 50/50, but driven by the continuing outsourcing trend this split is expected to reach a 35/65 split by 2024. Integrated* FM is expected to grow at a CAGR of 6.2% until 2024

Note:  *Integrated FM = full-service facility management

The Market for Outsourced Facility Management

Outsourced FM 2018
Geo. distribution (%)

Penetration Outs. Services
Segementsplit (%)

European Split
Geo. distribution (%)

Sources: Global FM Market Report (2018), Globe News Wire (2019)

Technology Trends in Facility Management

Smart monitors and controls will shape the urban landscape in a completely new way. Multinationals are investing in providers of smart building technologies

Facility management companies increasingly offer cloud-powered software-as-a-service products for analytics and remote management

Big data’s ability to uncover trends and provide information will also impact the facility management industry. For example, Sodexo launched a partnership with Microsoft to provide customers with individualized experiences

Robotics will shape the way how facility services are provided. For example, autonomous cleaners will take over tasks from personnel as systems become more affordable

Drones will have an important role in inspection and surveillance. Already today, drones are used for 3D mapping and roof inspections

Virtual reality technology enables the simulation of 3D environments of building and will be used for advertisement as well as training and inspection

Sources: Global FM Market Report (2018), CBRE Top trends (2019)

M&A Insights: Facility Management
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Trading Multiple Comparables

EV/Revenue (NTM)

EV/EBITDA (NTM)

Facility management companies have shown stable multiples (NTM trading) over the past two years, with EBITDA multiples in the range of 7.5x – 9.0x and revenue multiples fluctuating at around 0.7x – 0.8x

Note: The peer group is formed out of international stock-listed companies. For calculation purposes, two-year averages of consensus estimates on a next 12 months (NTM) basis were used


Key Performance Indicators

Selected Latest Deals

Want to know more?
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If you would like to learn more about the valuations and deals of your industry, the transaction mentioned above or generally our way of working, we would certainly be happy to demonstrate our m&a PLUS® principle in a confidential meeting.
Just get in touch and we will share our experience on how to grow businesses with long-lasting partnerships.

With passion for M&A,
Your SAZUN Team