Selling a property or facilities services business.

In short

Facilities and property services businesses are valued almost entirely on the quality of their contract base. Buyers examine contract length, notice periods, retention history and margin per site before they consider anything else.

This page explains who acquires these businesses, what strengthens the contract base in a buyer's eyes, and how to prepare so that TUPE, contract renewal and compliance questions are answered before they can be used to reduce an offer.

What we include in property & facilities services

Each business is placed in one primary sector based on its principal commercial activity, so a company appears once rather than in several overlapping categories. This sector covers: integrated and single-service facilities management; commercial cleaning and specialist cleaning; property and planned maintenance contracting; fire safety, fire protection and sprinkler services; security services, cctv and access control; grounds maintenance and commercial landscaping; pest control and compliance inspection services; commercial waste management services.

Who buys property & facilities services businesses

National facilities management groups. Buy contracted revenue, regional coverage and self-delivery capability.

Buy-and-build platforms. Particularly active in fire, security and compliance services, where contracts renew and margins are predictable.

Management teams. Buy-outs work well where contract managers hold the client relationships and cash generation is steady.

What moves value in this sector

Contract length and notice. A contract cancellable on 30 days' notice is valued very differently from a three-year agreement with an annual uplift.

Retention history. Evidence that sites are retained through renewal cycles is the strongest signal available in this sector.

Margin per site. Buyers rebuild margin site by site; loss-making contracts are removed from maintainable earnings.

Labour model. Direct employment, subcontracting, TUPE history and wage-rate exposure all affect the price a buyer will pay.

Compliance and certification. Sector certifications and accreditations that transfer materially widen buyer interest.

Preparing a property & facilities services business for sale

Build a contract schedule with start date, term, notice period, value, margin and renewal history.

Document TUPE history and the employment terms that would transfer.

Model exposure to national living wage increases and how they have been recovered.

Confirm certifications, accreditations and insurance survive a change of control.

Identify and address contracts trading below cost before going to market.

How a confidential sale is run

Your business is described anonymously by activity, region and scale. Buyers are qualified for funding and intent, sign a non-disclosure agreement before they learn who is selling, and receive detailed information only in controlled stages. Employees, customers, suppliers and competitors learn nothing unless and until you decide otherwise.

What is a facilities services business worth?

Value follows the contract base. Two businesses with identical turnover can be valued very differently depending on contract length, notice periods, retention history and margin per site, so the contract schedule is the first document a serious buyer asks for.

How does TUPE affect a sale?

In a share sale employment continues unchanged. In an asset or contract sale, TUPE generally applies to the employees assigned to the contracts transferring, so the employment terms, liabilities and history need to be documented before terms are agreed.

Will clients need to consent to the sale?

Only where individual contracts contain change-of-control provisions. Those are identified during preparation and handled between exchange and completion, which keeps the sale confidential until an agreement is substantially certain.

Next steps

If you are considering a sale, the next steps are usually a confidential conversation and an indicative valuation. See selling your business for how a controlled sale is run, free business valuation for how a range is established, and exit planning if you are working to a longer timescale.