What Makes a Facilities Management Business Attractive to a Buyer

What Makes a Facilities Management Business Attractive to Buyers Facilities management businesses vary widely in structure, but the ones that command the strongest valuations share some clear traits. Knowing where value is built — and where it quietly erodes — matters long before a sale process begins. In this conversation, Henry Campbell-Jones, Managing Director at Hornblower Business Brokers, draws on his direct experience advising on the sale of facilities management businesses across a range of sizes and sectors. We discuss how contract structure and client mix influence what a buyer is prepared to pay, the role of self-delivery versus subcontracting, and where owners tend to discover the gaps too late. In this video, we cover: What Makes Buyers Lean In or Walk Away Why skilled operatives, engineers and a capable management team matter more than the owner. Hard vs Soft Facilities Management The difference between building maintenance, HVAC and fire safety versus cleaning, security and waste management. What Drives Premium Valuations Why the maintainability and consistency of future revenue is what buyers really pay for. Recurring Revenue vs One-Off Projects Why contractual maintenance work is valued far more highly than reactive or one-off jobs. Contracts, Notice Periods and Framework Agreements Why formal contracts, longer notice periods and local authority framework agreements provide buyers with security. Client Concentration and Deal Risk Why no single client should represent more than 15% of revenue, and how concentration affects deal structure. Self-Delivery vs Subcontracting How the nature of service delivery shapes what a buyer is willing to pay. How Owner Dependency Affects Value Why the "can you go away for a month" test reveals how reliant a business really is on its owner. Payment Terms and Invoice Financing Why 60 to 90 day payment terms and invoice financing can catch sellers out at valuation. How Facilities Management Businesses Are Valued Why buyers use a multiple of EBITDA or recurring revenue, and how cash and debt affect enterprise value. Preparing for a Sale Why taking independent advice and having a critical look in the mirror early can improve sellability. Key Timestamps: 0:08 – Introduction to Henry Campbell-Jones 0:52 – What makes buyers lean in or walk away 1:07 – Hard vs soft facilities management and why people matter 3:19 – What drives premium valuations 4:01 – Recurring revenue vs one-off projects 5:17 – Contracts, notice periods and framework agreements 6:18 – Client concentration and self-delivery vs subcontracting 9:10 – Owner dependency and replacing yourself 11:39 – Payment terms, invoice financing and valuation multiples 13:27 – How to prepare and get ready for sale 15:01 – Closing thoughts Are you thinking about how ready your facilities management business is for sale? Let us know your thoughts in the comments below. 👍 Like this video if you found these insights helpful. 🔔 Subscribe for more expert analysis on business sales and valuation. Disclaimer Compare Wealth Managers is an Appointed Representative of Strata Global Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN: 563834). This video is for informational purposes only and does not constitute financial advice. The value of investments can go down as well as up, and you may get back less than you invested. Always conduct your own research or speak to a qualified advisor before making financial decisions.