As M&A activity in Facilities Management remains strong, a spotlight is turning to the Soft FM sector; cleaning, catering, security, and related services that play a vital role in almost every organisation. For owners and investors, understanding how this market is evolving is essential to answering the big question: what is my Soft FM business worth today?

The Size and Shape of the Soft FM Market

The UK Soft FM services market is valued at £16.7 billion in 2025, forecasted to grow to nearly £17.7 billion by 2028 at a CAGR of 1.9%.

While growth is steady, it’s the structure and pressures of the market that matter most for buyers:

• Core role in critical sectors: finance, retail, healthcare, and education continue to be major clients.
• High levels of competition: the market remains fragmented with many players competing primarily on price.
• Opportunities in compliance-driven services: cleaning, food safety, and security are increasingly tied to regulation and risk mitigation.

For business owners, this means valuations are closely linked to contract resilience, cost efficiency, and workforce stability.

Market Dynamics: Challenges and Opportunities

Soft FM providers face a unique mix of pressures and possibilities:

Challenges

• Intense price sensitivity, especially in public sector and local government contracts
• Rising labour costs and staff turnover
• Consolidation of sites, with fewer but larger contracts up for grabs

Opportunities

• Strength in compliance-led services where reliability and auditability are essential
• Potential for differentiation through service consistency, ESG commitments, and workforce retention
• M&A opportunities for scaling niche operators into national players

Why Buyers are Paying Attention

For investors and acquirers, Soft FM businesses are attractive because they deliver recurring revenues, underpin critical services, and often have long-term contracts in place. However, valuations are heavily influenced by a company’s ability to:

• Demonstrate stable margins despite competitive pricing
• Show contract renewal strength and low client churn
• Highlight ESG credentials in sustainability, workforce wellbeing, and compliance reporting
• Buyers are selective, prioritising businesses that balance cost control with operational reliability.

How GS Verde Group Supports Soft FM Businesses

At GS Verde Group, we recognise that Soft FM isn’t just about managing costs, it’s about creating long-term value in a sector that underpins everything from healthcare to commercial real estate.

Our team helps Soft FM business owners to:

Understand Their Value – through accurate, sector-specific valuations grounded in live market data.
Plan for Growth– whether through acquisitions, investment in new technology, or expanding service lines.
Prepare for Exit – from succession planning to private equity sales, ensuring owners achieve maximum value.
Navigate Transactions Seamlessly – by combining corporate finance, legal, tax, and communications advice under one roof.

We’ve supported FM businesses through growth and transformation, helping owners achieve their ambitions while navigating the unique pressures of this sector.

If you own a Soft FM business, the key question remains: what is your business worth today?
Contact GS Verde Group to explore your options, from growth to exit.

Learn more with Baachu

Next step: If you own or lead an FM business, now is the time to ask: what is my business worth today?

Get in touch with GS Verde Group to explore your options and plan for the future.