AI Magazine Issue 1 2017

58 Acquisition International - January 2017 2017 is looking like a year of opportunity on many levels. Brexit is going to be triggered and the serious business of extricating the country from the EU will begin. Trade agreements will start to be negotiated and how all this will impact on the sterling exchange rate is the subject of continuous discussion by business and financial analysts. The US will have a new President and way of doing business – how will that impact on us over here in the UK and Europe? It will certainly make for interesting times. tate of the Nation in the FM industry Outsourcing of facility services has increased considerably in the last decade, with most growth coming from emerging Asia Pacific markets. Even though these markets are smaller than those in North America and Western Europe, the market penetration is without a doubt increasing at a fast pace. The growth in outsourcing goes hand in hand with an increased appetite for integrated facility management (IFM) and with an expected annual growth rate of 6-8% to reach $1.314 trillion in 2018, the M&A landscape is looking active. The impact of the fall in Sterling has already offered up wider opportunities for those international investors looking to gain a foothold in the UK economy, and it is reassuring that most see Britain still as a stable and progressive country with a burgeoning, entrepreneurial economy which makes it an attractive and lucrative place to do business. The London property market has always been the jewel in the crown for the UK and travelling around the country, major commercial building and construction sites are visible everywhere which is surely a good sign of financial confidence which helps drive the FM sector. Many foreign investors are now looking for strategic acquisitions to gain a foothold in a market which is of increasing interest and attractiveness, especially if they have no previous presence in this sector, and with currency fluctuation in their favour this extends the potential of their budgets. For domestic sellers, Brexit should also be looked on in a positive light. Companies seeking investment or to merge/sell have become more attractive and they should target not only north American and Asian finance, but France and Spain have been showing a high degree of interest in the UK FM market, especially where companies are involved in Heating, Ventilation, Air Conditioning (HVAC), cyber and tech specialisms. FM is big business in Europe and it is general accepted the UK is the torchbearer in the industry with Asia is still playing catch up to both Europe and North America. Here in the UK some commentators estimate the FM sector contributes some 10% to the UK economy and the pendulum swings back and forth between trends towards specialist offerings or a more integrated one for total FM. Either way, there are now a large number of major players in what is becoming a very competitive market and technology is now a major factor in the way FM is being run, especially across large estates or buildings. Technology explosion As with pretty much all industries, the advent of technology across the FM sector has revolutionised the marketplace. CAFM (Computer Aided Facilities Management) and IWMS (Integrated Workplace Management System) tools optimise control of assets and resources, improve service delivery and deliver a rapid return on investment. Powerful reporting capabilities provide essential insight into performance to support informed decision making. FM companies are rapidly upscaling and upgrading their systems and any investor, whether domestic or international, will be looking for companies already maximising their use of technology or are needing the investment to do so. The use of technology can bring both considerable efficiencies as well as considerable cost savings. This can be critical where profit margins in FM Name: Nick Atherton, managing director Company: Morphose Ltd, Email: nickatherton@ morphose.co.uk Web: www.morphose.co.uk Address: Morphose Ltd Phone: +44 7967 184 359 2017 – Uncertainty or Opportunity forM&A in FM? S “The use of technology can bring both considerable efficiencies as well as considerable cost savings .”