Shared Insight: Building Value in Hard FM - What’s Driving Growth and M&A Activity?

Shared Insight: Building Value in Hard FM - What’s Driving Growth and M&A Activity?

The UK Facilities Management (FM) sector is evolving, and Hard FM; the essential services that keep buildings safe, compliant, and operational, is increasingly in the spotlight. With M&A activity continuing at pace, business owners in the Hard FM space are asking the all-important question: what is my business worth today?

The Hard FM Market: A Resilient Core

The Hard FM market — covering HVAC, electrical systems, plumbing, fire safety, and building maintenance, is currently worth £18.2 billion in 2025, and is forecast to grow to £19.3 billion by 2028, at a CAGR of 1.97%

Why this matters:

  • Recurring demand: Hard FM is mission-critical for every sector, from healthcare and housing to education and defence.
  • Growth drivers: Increasing focus on asset lifecycle support, statutory compliance, and sustainability in the built environment.
  • Regional opportunities: Demand is particularly strong in the South East, the UK’s largest FM region, representing over 30% of the market.

Market Challenges

  • Despite its resilience, Hard FM providers face notable headwinds:
  • Labour shortages – the skills gap in technical trades continues to widen.
  • Aging asset bases – older buildings require more intensive maintenance and compliance interventions.
  • Rising statutory risks – fire, water safety, and building regulations are tightening, increasing compliance demands.
  • Inflationary pressures – energy costs, wages, and materials are pushing up delivery costs.

For business owners, the ability to manage risk and control costs is critical to maintaining margins and protecting valuation multiples.

Opportunities for Growth
On the other side of the equation, Hard FM providers are well placed to benefit from:

  • Compliance-led demand: Fire safety, building integrity, and water compliance remain non-negotiable.
  • Sustainability: Investors and clients alike are seeking partners who can deliver energy performance improvements and carbon reduction initiatives.
  • Asset lifecycle solutions: Providing integrated support from installation through maintenance and renewal creates long-term client stickiness.
  • M&A consolidation: Larger platforms are actively seeking to acquire niche Hard FM specialists to broaden their technical capabilities and client base.

What Buyers and Investors Look For
For acquirers, Hard FM businesses that stand out demonstrate:

  • Stable, long-term contracts with strong renewal history
  • Skilled workforce and effective recruitment/retention strategies
  • Evidence of compliance excellence and risk management
  • A track record of sustainable, margin-resilient delivery

In today’s M&A environment, businesses that can combine technical expertise, compliance credibility, and efficiency are commanding premium multiples.

How GS Verde Group Supports Hard FM Businesses

At GS Verde Group, we understand the transformation challenges in Hard FM; from skills shortages to sustainability pressures. But we also see the opportunities to build long-term strategic value.

Our team helps Hard FM business owners to:

  • Plan for Succession – supporting generational change or leadership transition.
  • Secure Growth Capital – funding for technology adoption, sustainability investment, or expansion.
  • Execute M&A Transactions – whether selling to private equity platforms or acquiring to scale.
  • Unlock Business Value – delivering accurate, market-informed valuations that reflect today’s buyer priorities.

With corporate finance, legal, tax, and communications expertise under one roof, GS Verde provides the joined-up support Hard FM businesses need to grow, transform, or exit successfully.

The key question for owners today is simple: What is your Hard FM business worth right now?
Get in touch with GS Verde Group for a confidential, no-obligation conversation about your options.

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