Facilities management and property services M&A insight report 2025
UK facilities management sees significant growth in deal volumes
180+
deals completed in 2025
1/3 of deals
for fire system and lift services businesses
50%
PE deals in 2025
Over 80%
PE deals were bolt-ons
- Deal volumes grew significantly in 2025, showing increased investor appetite in the sector.
- Corporate buyers increased their share of deals in 2025, though private equity remained a central force in the market, completing 90 deals in 2025.
- 58% of verticals identified in 2025 transactions were hard FM-related, up from 49% in 2021.
- Waste management business deals saw the most growth, up 108% from 2024.
Introduction
The UK facilities management (FM) and property services sector experienced a markedly more active M&A landscape in 2025 despite ongoing wider macroeconomic pressures. Of the deals falling within the scope of our review, deal volumes reached 181 transactions, representing a significant 54% increase compared with 118 transactions in 2024.
The sector’s resilience continues to be underpinned by its essential-service nature, long-term contractual structures and strong alignment with regulatory, compliance and sustainability-driven demand. Despite labour-related pressures (such as the increases in national insurance and the national living wage introduced in 2024, labour shortages and increases in compliance burdens), 95 of the identified transactions in 2025 involved businesses with soft FM capabilities, of which 46% offered cleaning or security services.
The sector’s success continues to be demonstrated by the share price performance of listed FM businesses which, overall, track well above the average of the FTSE 250 and FTSE All Share. Since January 2021, share prices of those businesses in our FM index have increased 132% following a year of unprecedented growth in 2025 (up from 72% growth at the end of 2024).
Breakout year for FM M&A
Deal volumes remained relatively consistent between 2021 and 2024, with annual totals ranging from approximately 111 to 118 transactions. However, 2025 marked a decisive breakout year with 181 transactions recorded, 54% growth since 2024. This elevated level of activity was buoyed by a particularly strong Q4, which saw 56 deals complete. This made it the busiest quarter in the entire dataset. The sharp increase suggests a combination of factors: pent-up buyer appetite, improved financing conditions, greater certainty around medium-term regulatory trajectories and strong alignment between FM services and broader themes of safety, compliance, decarbonisation and efficiency.
Waste management demonstrated the most substantial year-on-year uplift, increasing from 13 identified transactions in 2024 to 27 in 2025. Similarly, energy services and building maintenance saw growth in 2025, reflecting the dual pressures of sustainability targets and the need to modernise ageing building stock.
Against the backdrop of the growth in FM deals, we continued to see a shift to targets who offer hard FM services, which made up 58% of all target verticals identified in 2025, up from 49% in 2021. This shift underscores buyers’ preferences for regulated and specialist activities such as fire systems, HVAC, lifts, energy services and mechanical & electrical services, which offer strong margins, repeat revenues and structurally higher barriers.
Within this shift, fire systems installation and lift services stood out as a major growth area (56 deals in 2025 vs 42 deals in 2024 ): nearly a third of all 2025 deals involved businesses providing these services, fuelled by tightening regulation and rising compliance requirements and significant interest from private equity (PE) and PE-backed businesses.
M&A key spotlights
Focused hard FM buy-and-builds drove growth in the sector
2025 saw a slight increase in the proportion of corporate acquirers compared 2024, leading to an even 50/50 split of M&A activity and PE.
The narrative for PE was one of strategic refinement as PE’s share of FM transactions dipped slightly from the prior year’s peak of 55%. PE remained highly active, completing 90 transactions. Over 80% of PE-backed deals in 2025 were bolt-on acquisitions, demonstrating the suitability of the sector for buy-and-build strategies.
This strategic focus was evidenced by a discernible trend towards acquiring specialist expertise. In 2025, 73% of all PE-backed bolt-ons were for single-service providers, a marked increase from 60% in the previous year. Rather than simply broadening service offerings, this indicates a deliberate strategy to build depth and technical capability within platform investments.
Buy-and-build activity was most prominent in the compliance-driven hard FM space, where the fire systems and lifts verticals became the focal point for consolidation. When aggregated, these two sub-sectors account for just under half of all 2025 bolt-ons, totalling 26 and nine respectively, this ultimately underscores where PE capital was most aggressively deployed.
- Fire systems remained the most active vertical, representing over a third of all bolt-on deals. Acquirers like The Compliance Group (Ansor-backed) and Certania (backed by Unigestion, Summit Partners and Greenpeak Partners) exemplified the trend by each making three acquisitions of single-service fire systems businesses.
- Bolt-on activity in lifts was driven by LDC-backed Deltron Lifts who acquired six specialist businesses in 2025, after receiving investment in July 2024.
The high volume of deals was driven by a highly focused campaign to acquire specialist, single-service providers in compliance-led hard FM niches, a trend that solidifies the outlook for continued PE-led consolidation throughout 2026.
Cleaning and security continue to attract investment
Despite ongoing pressures (such as inflation, rising labour costs and recruitment challenges), the soft FM sector delivered a strong performance in 2025. Deal activity continued to build momentum, with transactions rising from 77 in 2024 to 95 in 2025, clear evidence of sustained confidence in the space.
Cleaning and security services were a particular bright spot, continuing to attract strong buyer interest throughout the year. Their essential, non-discretionary role in building operations, supported by long-term contracts and predictable recurring revenues, remains highly appealing to investors. A quarter of all deals in 2025 involved businesses offering cleaning and/or security services, demonstrating the enduring strength of buyer appetite.
Ongoing outsourcing trends, combined with the critical part these services play in ensuring safety, hygiene and operational continuity, further bolstered demand even amid a more challenging labour-intensive environment. These attributes supported increased activity levels in 2025, firmly reinforcing cleaning and security as growing, attractive areas within the wider soft FM landscape.
Case study: New Green Services → Ever Brite Cleaning
Moore Kingston Smith Corporate Finance advised New Green Services Ltd, a specialist cleaning and grounds‑maintenance provider for housing associations across London and the South East, on its sale to Ever Brite Cleaning Services Ltd. New Green, founded in 2003, is recognised for long‑standing client relationships and strong environmental and health‑and‑safety credentials.
This transaction represented a typical example of consolidation within the FM sector. The acquisition reflects a common strategic rationale: enhancing service breadth, expanding regional footprint and strengthening the combined entity’s capabilities in environmentally aligned cleaning services. Even at this high level, the deal illustrates the broader sector trend of combining specialist skills with scalable operational models to meet evolving client expectations around sustainability and compliance.
In this transaction, Moore Kingston Smith Corporate Finance provided deal advisory services, which involved approaching a range of UK acquirers to find the perfect fit. The team negotiated the deal terms, supported throughout due diligence and advised on all financial aspects of the contracts as well as project-managing the transaction from inception to completion.
“I would like to extend my thanks to Dan and Tom at Moore Kingston Smith for their efforts in the sale of New Green. They took the time to understand our business, and their knowledge of buyers, expertise and understanding of the sector were key in completing this deal. As I have not sold a business before, the communication and support from the team were vital in making the whole process as smooth as possible. I would definitely recommend Moore Kingston Smith to anyone planning to sell their business.”
Edward Dixon, Managing Director of New Green
“The facilities management sector is very exciting at the moment, and we are seeing lots of activity across all levels of the industry. It was a pleasure to guide Edward through the transaction, and we look forward to seeing where this new partnership will lead.”
Dan Leaman, Corporate Finance Partner at Moore Kingston Smith
Waste management M&A doubles in 2025
Waste management was one of the fastest growing areas of FM M&A, with transactions more than doubling from 13 in 2024 to 27 in 2025, up 108% from 2024, building on the longer term interest in the sector. This concentration of activity reflects the sector’s strong fundamentals: long-term contractual revenues, essential service demand, and growing regulatory and ESG pressures that make compliant, sustainability aligned businesses particularly attractive to both corporate and PE buyers. With 24 of the 27 waste management deals in 2025 involving pureplay operators, the data shows just how strongly investors are favouring specialist, single service providers in this vertical.
The transaction landscape was characterised by buyers making one acquisition during 2025. However, each of CIRQLR Group, First Mile and Holcim UK made two acquisitions, demonstrating how a targeted buy-and-build strategy may be starting to take shape within waste management.
MBO activity accelerates
With 14 management buy-outs (MBOs) over the last two years, this type of transaction is become an increasingly prominent feature of FM deal flow. As debt markets have begun to stabilise and the cost of capital eases, well‑performing management teams are finding renewed confidence – and, crucially, renewed lender support – to pursue ownership transitions that were more challenging to finance during the peak rate environment of 2023-2024.
For many FM businesses, which often benefit from long‑term contracts, strong cash generation and high client retention, MBOs offer a compelling succession route that preserves operational continuity while allowing founders to exit or de‑risk. At the same time, sponsors and debt providers are increasingly receptive to backing management teams with deep sector expertise, particularly in technical and compliance‑driven service lines. As a result, we expect MBO activity to continue rising throughout 2026 as borrowing costs fall further and management teams seek to capture the value created during a period of resilient operational performance across the sector.
Outlook for 2026
The FM sector enters 2026 from a position of real momentum, following a breakout year characterised by sharply elevated deal volumes, strong consolidation trends and heightened investor confidence across both hard and soft FM. Activity is expected to remain robust, with continued interest from corporate and PE buyers – particularly in specialist, compliance driven verticals, such as fire systems, lifts, energy services and waste management, all of which saw substantial growth through 2025. Sustainability linked service lines are also set to attract increasing investment, supported by tightening regulatory frameworks, carbon reduction commitments and the accelerating need to modernise ageing building stock.
Technology integration will continue to differentiate leading operators, with growing adoption of smart building solutions, predictive maintenance platforms and sensor driven service models that enhance efficiency, transparency and contract performance. While labour pressures, procurement reform and rising expectations around data auditability may weigh on some providers, those with scale, embedded processes and digital maturity are well positioned to benefit.
Overall, the sector outlook for 2026 remains strongly positive. Essential service demand, sustained appetite for specialist capabilities and favourable conditions for both platform acquisitions and targeted bolt-ons will continue to drive consolidation, creating significant opportunities for strategic buyers and PE-backed platforms alike.
Moore Kingston Smith Corporate Finance – how can we help?
Our team thoroughly understand owner-managed businesses and can help you assess your options and establish a strategy to achieve your ambitions: whether a business sale, a management buy-out, acquiring another business or raising funding for further growth.
By understanding your personal ambitions and your aspirations for your business, our team works with you through all stages of a transaction to achieve a successful outcome. If you have had an approach already, we can assist throughout the process, advising on how to maximise value.
Contact our expert team for a no-obligation initial discussion regarding your plans.
Methodology
In compiling our deal tracker we use Pitchbook, an international financial data provider that gives access to comprehensive data on the private and public markets. Moore Kingston Smith has analysed completed transactions, excluding debt and IPO transactions, by UK based facility management and property services companies from 1 January 2021 to 31 December 2025 to identify the trends in this report. This research aims to capture all transactions by UK companies that fall within the facility management sector.
