The FM acquisition market in 2026.
A practical briefing on valuations, buyers, and the forces shaping the sector.
Update, November 2026. The October 2026 Budget announced that the Business Asset Disposal Relief lifetime limit will fall from £1 million to £500,000 for qualifying disposals from the start of the 2027 to 2028 tax year in April 2027. Relief already claimed counts towards the limit, and the 18% rate does not change. For tax, the date of an unconditional contract normally counts as the date of disposal rather than completion, and specific rules will apply to contracts signed before the change that complete after it. Where this page quotes a different limit, rate or date, this note takes priority. Take advice on your own position. What the change means for owners.
Multi-service consolidation is reshaping the sector.
IWFM's 2025 Market Outlook puts the facilities management sector's worth to the UK economy at £102bn, with 1.2 million jobs. Buyers look closely at businesses that can deliver hard FM and soft FM under one roof.
About 34,200 active companies are registered in facilities support and general building cleaning alone. Source: Companies House, October 2026
This is not a prediction. It is a structural change that is already driving acquisitions. Buyers are actively seeking facilities management businesses that have moved to bundled contracts, and the premium they are willing to pay reflects the speed and certainty of acquiring rather than building.
Private equity is buying facilities management businesses at scale.
Private equity firms, investment firms that buy companies to grow and sell on, are building "buy and build" platforms in the facilities management sector, assembling regional multi-service businesses into national operations with shared back-office, procurement, compliance, and training infrastructure.
They target businesses with:
- Multi-year contracts providing predictable recurring revenue
- TUPE workforce with current accreditations
- IWFM membership and ISO triple certification (9001, 14001, 45001)
- SafeContractor, CHAS, or Constructionline registration
- Diversified sector mix across commercial, public sector, or healthcare
For independent owners, this can mean more buyers competing for a business. Well-prepared businesses are the ones that appeal to both PE-backed platforms and national FM groups buying to grow.
An illustrative worked example.
To show how valuations work in practice, here is an illustrative example, not a record of any one sale. It is priced on adjusted EBITDA, profit before interest, tax, and the write-down of equipment, vehicles and other assets, once one-off costs are stripped out. The 6x to 7x range is the one this site's calculator applies to this profile.
Example Facilities Management Business Profile
What pushes this example to the top of its range: Triple ISO certification and SafeContractor/CHAS demonstrate compliance maturity. Low owner dependency means the business runs without the seller. Three plus year multi-service contracts provide predictable revenue and high switching costs for clients. A diversified client base reduces concentration risk.
What keeps this example at the bottom of its range: A single client representing a large share of turnover introduces concentration risk. A contract book weighted towards rolling annual terms reduces visibility. Heavy reliance on the owner for contract delivery or client relationships is the single biggest drag on the multiple, the figure yearly profit is multiplied by to set the price.
Every business is different. This example illustrates the methodology, not a promise. Your valuation depends on your specific circumstances.
The market in numbers.
UK FM sector: £102bn and 1.2 million jobs
The sector's worth to the UK economy, according to IWFM's 2025 Market Outlook, April 2025.
Active companies in facilities support and general building cleaning: About 34,200
Source: Companies House, October 2026.
Accreditations buyers check: ISO 9001, 14001 and 45001, CHAS, SafeContractor and client approvals
Buyers check that each is current, with audit and renewal dates tracked. Source: Reads' Facilities Management Business Owner's Guide to Selling, Autumn 2026.
BADR Tax Rate Change: The Capital Gains Tax (CGT) rate under Business Asset Disposal Relief (BADR), the tax on the gain when you sell a business you own and work in, went up from 14% to 18% in Apr 2026
Business Asset Disposal Relief CGT rate increased from 14% to 18% in April 2026, on qualifying gains up to £1m.
The BADR rate rise: why timing still matters.
Business Asset Disposal Relief (BADR) provides a reduced Capital Gains Tax rate on qualifying business disposals up to £1 million, falling to £500,000 from April 2027. The rate rose in stages, and it has been 18% since April 2026.
| Before Oct 2024 | Oct 2024 to Apr 2025 | Apr 2025 to Apr 2026 | From Apr 2026 | |
|---|---|---|---|---|
| BADR Rate | 10% | 10% | 14% | 18% |
| Tax on £500K gain | £50,000 | £50,000 | £70,000 | £90,000 |
| Tax on £1M gain | £100,000 | £100,000 | £140,000 | £180,000 |
These are simplified illustrations. Capital Gains Tax calculations depend on your personal circumstances. Always take advice from your accountant.
The rate change is legislation, not speculation. For a £500,000 gain, the difference between 14% and 18% is £20,000. For a £1 million gain, it is £40,000. The rate is set by the date the sale contract is made, not by completion, so take tax advice on timing early.
Find out what your facilities management business is worth.
Try the free calculator for an indicative range from your own figures, then have a free first conversation.
181 deals in 2025. Private equity in half of them.
UK facilities management and property services companies were involved in 181 deals in 2025, up 54% on 118 in 2024, and private equity firms, investment firms that buy companies to grow and sell on, completed 90 of them, half of the total. Hard FM made up 58% of the service lines identified in those deals. Statutory testing, planned maintenance, fire and water hygiene compliance and M&E maintenance are not discretionary, and they tend to renew.
Sources: Moore Kingston Smith, June 2026; Companies House, October 2026; Reads' Facilities Management Business Owner's Guide to Selling, Autumn 2026
Discuss the market with a sector specialist.
Tell us about your business and we will be in touch within two working days.
Thank you for getting in touch.
We have received your enquiry and will be in contact within two working days. Everything you have shared is treated in the strictest confidence.