Facilities Services Industry Update

Sector Perspectives

The Global Facilities Services Industry is a $55bn Market with Significant Drivers for M&A Growth

• The global facilities services market reached a value of $55 billion in 2021 and is projected to grow at a CAGR of ~13.4% to ~$117 billion through 2027E
• Companies continue to turn to alternative outsourcing solutions for non-core facilities functions such as property management, janitorial and security management, and other services
• Subsectors within the industry remain highly fragmented as key regional and national players continue to compete with smaller local / regional private companies
• Investor interest in facilities services businesses remains high and M&A momentum is expected to continue given the fragmentation of the market and recurring nature of revenue streams, among other attractive macroeconomic tailwinds
• In 2H 2022, PE-backed facilities services companies were particularly active acquires
• Portfolio companies backed by the Carlyle Group (Sciens Building Solutions) and Atlas Partners (Pye - Barker Fire & Safety) both completed over two acquisitions in 2H 2022
• Overall, optimism remains high that the facilities services M&A market will continue to remain strong in 2023