DLI's Successful Facilities Management Deal: What’s Driving M&A Growth in the Sector?

The Facilities Management industry is experiencing a period of significant growth, attracting interest from different acquirers ranging from trade players to Private Equity and Investment Holding Companies. Several key factors are driving this growth, from the rise in outsourcing services to the growing emphasis on sustainability, technology integration, and South Africa’s private and public sector infrastructure expansion.

As businesses seek specialised expertise to optimise operations and meet evolving market demands, the sector is becoming a hotbed for mergers and acquisitions. At Deal Leaders International (DLI), we have seen firsthand how these trends are shaping deal activity, with our latest transaction serving as a prime example.

At DLI, we believe that a successful transaction is one where both parties achieve a mutually beneficial outcome. While compromise is often necessary, it is a balanced process that ensures a win-win scenario for all involved. This philosophy was evident in our latest Facilities Management transaction, which resulted in a seamless sale to a trade player.

This particular transaction was exceptionally smooth, reaffirming that the DLI system effectively matches sellers with the right buyers. The deal was structured as a 100% exit, with a structured handover at a significant EBITDA multiple. 

During our market engagement and research process, we observed significant traction in the industry, fuelled by 5 key factors:

1. The Growing Demand for Outsourcing Services: Companies are increasingly outsourcing Facilities Management to specialists, allowing them to focus on their core business while benefiting from professional expertise in managing infrastructure and operations.

   
   

2. Sustainability and ESG Commitments: As sustainability becomes a business imperative, large corporates are investing in custom-built solutions designed and operated by Facilities Management specialists. This ensures they meet their ESG commitments while maintaining operational efficiency.

   
   

3. South Africa’s Infrastructure Investment Boom: The country’s increased investment in infrastructure projects, particularly commercial buildings, has created a surge in demand for skilled facilities managers. These professionals are crucial in ensuring the efficient operation and maintenance of these properties.

   
   

4. Technology-Driven Growth: The integration of building management systems (BMS), data analytics and automation is transforming the sector. Businesses that leverage these technologies to optimise operations and reduce costs are attracting considerable interest from investors.

   
   

5. Employment Creation Across Skill Levels: The Facilities Management industry plays a significant role in job creation across multiple skill levels, further positioning it as a sector of strategic importance.

The Facilities Management market in South Africa is projected to grow at a compound annual growth rate (CAGR) of 5.09% between 2023 and 2029. This steady growth highlights the increasing importance of the industry and presents exciting opportunities for both sellers looking to exit and buyers seeking strategic acquisitions.

 

The DLI Advantage

Our recent success in this sector reinforces the effectiveness of our approach. At DLI, we don’t just facilitate transactions—we create strategic matches that ensure both parties walk away with value. Whether you’re considering an exit or looking to expand your business through acquisitions, our expertise and market insights can help you navigate the complexities of M&A with confidence.

If you're in the Facilities Management sector and exploring M&A opportunities, let's discuss how we can help you achieve the right deal with the right partner.