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Transaction Management – FM players seeking foothold

Armed with global presence, scale and experience, these companies are often the logical choice for large multinationals seeking advice on real estate transactions. The decision to outsource is generally strategic in nature given that main business of such multinational is often not focused on real estate.

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What is the Average Value & Duration of the FM Contracts in the UK?

The UK facilities Management comprises of a wide range of players that offer services across various sectors and the key players offer services utilizing their size & scale. So, the average contract value and duration is varied based on the sector, service provided and the type of sector. Overall, FM providers have secured various contracts with an average total contract value TCV of ~£10.9Mn and an average contract duration of 3.9 years.

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Impact of COVID-19 in UK FM Market

The effects of COVID-19 will lead to an inevitable slowdown in M&A activity in the immediate term. In connection with both existing deals and new deals, there will be critical questions around target valuations, which will require the parties to be flexible about purchase price and structure.

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Crown Commercial Service (CCS)

Crown Commercial Service is the Cabinet Office Executive Agency responsible for policy making, advice and delivering direct procurement services to government departments. As of 2019-20, CCS has ~771 employees working across 5 locations including Liverpool, Norwich, Newport, Leeds &London.

The agency supports over 18,000 customer organisations procure products and services from more than 5,000 suppliers. The Key responsibilities are managing the procurement of common good an services, increasing savings for the taxpayer by centralising buying requirements for common good& servcies and leading on procurement policry on behalf of UK government.

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UK Facilities Management landscape by Service – Pest Control Services

Pest infestations can cause an array of problems from the obvious health & safety implications to loss of stock, risking the reputation of your business. Pest Control Services involve range of measures for regular inspection, treatment & control of rodents, crawling & flying insects & pest bird species.From small domestic work to large offices and premises in the city centre’s, the pest control companies minimize the threat of pest infestations by both preventative & responsive strategies.

The total Pest Control Services FM market in the UK is estimated at ~£2.1 Bn in terms of Total Contract Value, accounting for 1.8% of the total UK FM Market.

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UK Facilities Management landscape by Service – Reception Services

Reception Services involves welcoming an organization’s visitors, providing information & guidance, maintaining overall security and handling minor office tasks & also offer technology-enabled solutions including virtual front-of-house and help desk services.

Various FM providers offer bespoke, sophisticated concierge-style services that reflects the environment expected by the client’s community.

The total Reception Services FM market in the UK is estimated at ~£5.3 Bn in terms of Total Contract Value (TCV), accounting for 4.5% of the total UK FM Market

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UK Facilities Management landscape by Service – Landscaping & Gardening

Landscaping & Gardening refers to any activity that modifies the visible features of an area of land, including living elements, such as flora or fauna.

The total Landscaping & Gardening Services FM market in the UK is estimated at ~£1.0 Bn in terms of Total Contract Value (TCV), accounting for 0.8% of the total UK FM Market.

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