Q3 2026 Facilities Management Update: M&A activity remains strong as investors continue to back technical and compliance-led services
The facilities management sector remained active throughout Q3 2026, with UK and Ireland deal volumes continuing to outperform historical levels. Despite continuing economic uncertainty, investors remain attracted to businesses providing essential, recurring and compliance-driven services.
Our latest Facilities Management Quarterly Update recorded 64 transactions during the quarter, a 64% increase on the long-term average, underscoring the continued strength of M&A activity across the sector.
Key themes from Q3
Demand for technical services continues to strengthen
Businesses operating in specialist and technical service areas continue to attract significant investor interest. Growth in data centre construction and supporting infrastructure is creating additional demand for providers with the expertise to maintain and manage increasingly complex environments.
Scale remains a key strategic driver
OCS's proposed acquisition of Mitie was one of the quarter's most notable transactions and demonstrates the ongoing importance of scale, service breadth, and national coverage in the FM sector.
Compliance remains an important growth driver
Regulatory requirements continue to support demand across several specialist service areas. Businesses with strong compliance capabilities, recurring revenue models and long-standing customer relationships remain highly attractive to both strategic and financial buyers.
M&A remains focused on capability enhancement
While scale remains important, many transactions this quarter were driven by buyers seeking to strengthen technical expertise, broaden service offerings, and expand regional coverage.
Valuations remain resilient
Private equity investors continue to play an important role in the sector, supporting both platform investments and buy-and-build strategies. Public market valuations remained relatively stable throughout the quarter. Meanwhile, Hard FM businesses continued to trade at a premium to Soft FM peers, showing their technical expertise, compliance-driven revenues, and attractive market fundamentals.
During the quarter, we advised Orega's founders and management shareholders on a management buy-out backed by Apiary Capital. The transaction highlights continued investor appetite for high-quality businesses operating across the wider built environment sector.
