ASSOCIATION NEWS
BDO TEAMS UP WITH RICS FOR A FORWARD LOOK
AT THE FACILITIES MANAGEMENT MARKET
The FM market has become one of the most developed and mature yet
continues to advance in stature and evolve. Clients are increasingly telling us
of intensifying demands and sophistication amongst businesses in procuring
FM services. The sector as we have experienced it for decades is likely to
transform to something very di erent in the future as businesses look to build
long term partnerships. Digitisation is set to transform FM in a marketplace
where data is becoming the most valuable commodity. Such advances are
pushing boundaries and present a great opportunity for ongoing innovation
in the sector. This contributes to healthier sustainable profit margins.
The UK continues to attract investment from global specialist FM
companies as they try to address challenges in local fragmented markets.
BDO’s UK deals database records over 500 completed M&A deals since 2015.
Large strategic buyers were highly active mopping up smaller rivals and
private equity investment was on the up as financial sponsors continue to
amass dry powder to deploy. Those business models which have become
technologically-enabled has resulted in valuations generally rising, with high
single digit or even double-digit multiples being paid. Higher valuations in
FM do a ect how acquirers analyse targets. They are very careful about due
diligence, such as a major focus on analysing quality of earnings.
A er a strong year for deal activity in 2018, there is cautious optimism about
the year ahead as FM operators learn from the corporate failures in 2018 and
implement strategies to combat the pitfalls and exit low margin contracts.
Uncertainty continues to hang over the sector regarding Brexit negotiations
DO FMS REALLY KNOW THEIR BUILDINGS?
8 MARCH 2019
and the UK’s smooth passage out of the EU.
Having said that, the future for FM in the UK remains exciting. The race
among FM operators to equip themselves with the technology required to
remain competitive will spur M&A activity. The establishment of the IFMA
UK Chapter in collaboration with RICS is exciting and will help redefine the
interpretation of FM.
Demonstrating the value of facilities management continues to be at the
heart of the debate within FM, but value comes in many forms.
Delivering value through a truly sustainable approach requires a clear
understanding of all your stakeholders, aligned with a very disciplined
strategy, which looks to balance the Economic, Environmental and Social
aspects of all we do.
Facilities management is ideally placed to drive significant social value,
the variety of roles allied with the diversity of our people o er significant
employment, training and community engagement opportunities that are
unique to our sector.
It is clear that in 2019 the world of FM is dynamic and evolving but also at a
crossroads in its development.
Satvir Bungar MBE FCA MCSI MD and Head
of Facilities Sector, M&A Advisory BDO LLP
Paul Bagust RICS, Global Property
Standards Director
Take a few minutes to think about the
building you manage as if it were a person.
What makes them happy and what makes them
sad? What do they need to keep them healthy?
What do you like about them and what annoys
you? As facilities managers we don’t tend to have
an emotional connection with our buildings,
understanding them in a holistic sense rather
than as separate parts and systems which need
to be constantly fixed and managed to meet the
needs of the actual people who occupy them.
But what if we were more inquisitive about our
buildings? Spent some more time understanding
their operational reality and obtaining further
technical insight?
The gulf between
the design intent
of buildings and
how they are
actually operated
and perform
is commonly
acknowledged.
So as FMs we
need to do some
investigative work into what makes our buildings
happy and find ways to ensure they are fully
optimised. A simple way to start is by spending
some time working in di erent parts of a building to
get a real handle on how the spaces feel.
• Consider variables such as ventilation, heating,
cooling, lighting, air quality and acoustics, the
interdependencies between them and how they
contribute to a comfortable environment for
occupants.
• Implement out-of-hours surveys to see where the
fuel you’re giving your building to function is going, is
equipment on when it shouldn’t be and are systems
working against each other.
• Question everything. Just because systems
within buildings are becoming more automated,
it doesn’t mean that they’re infallible; sensors still
need calibrating, set points still need to be checked,
controls still need to be tweaked.
• Think about the seasonal rhythms of your
buildings, how they work to maintain comfortable
environments throughout the year and the di erent
requirements needed to enable this.
Being proactive rather than reactive is easier
said than done, but thinking about looking a er
a building as if you were looking a er your own
health can help to reframe your approach to
operation and maintenance. Knowing your building
in all its glorious detail means you can recognise
what it needs to function optimally and plan future
resourcing accordingly. Just as you shouldn’t take
the people close to you for granted, don’t take your
building for granted. It needs constant attention
and care and if a building is happy, then it follows
that the people inside it should be too.
CIBSE provides guidance and knowledge in a
range of subject areas including; maintenance
contracts, energy e iciency, commissioning and
testing, operational risk assessment, operation and
maintenance costs, health and comfort, condition
surveys, legislation and compliance, and training.
Whether you are working in a hard or so FM
environment, or a combination of both, CIBSE has
the tools to help you. www.cibse.org
Sara Kassam provides a focus for sustainability
issues at CIBSE, developing new opportunities for the
Institution, encouraging collaboration, and working
on policy and knowledge-related activities.
INDUSTRY INSIGHT FMJ.CO.UK
BDO publishes its annual Facilities Management sector report in partnership with RICS providing the ongoing M&A
market review and outlook for the coming year as well as insights on key topics and some of the biggest trends in FM.
/www.cibse.org