Commercial & Industrial Services Practice Overview

Introduction

Harris Williams is pleased to present our Commercial & Industrial Services Industry Update for February 2021. This report provides commentary and analysis on current capital market trends and merger and acquisition dynamics within the global commercial & industrial services industry.

We hope you find this edition helpful and encourage you to contact us directly if you would like to discuss our perspective on current industry trends and M&A opportunities or our relevant industry experience.

Our Practice

Harris Williams’ Business Services Group has experience advising companies that provide a range of commercial, industrial and professional services. 

This particular report focuses on trends and metrics in the following areas:

  • Environmental & Waste
  • Events & Entertainment
  • Facility Services
  • Field & Route Based Services
  • Fire & Life Safety
  • Food Services
  • Janitorial
  • Landscaping
  • Mechanical Services
  • Property Management
  • Property Restoration
  • Security
  • Service Aggregators
  • Technician Services
  • Testing, Inspection, Certification & Compliance

Representative Transactions

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What We’re Reading

C&I Services: Five Transactions, One Powerful Trait

In the final months of 2020, Harris Williams advised several commercial and industrial services companies in some of the earliest and most significant transactions to occur since the pandemic began: Service Logic, Parts Authority, Capstone Logistics, Valet Living, and Highline Aftermarket. While their business models may be different, all the companies were recession-resistant and highlighted the health of M&A markets.

Read more here.

Facility Management Trends & Challenges for 2021

Entrepreneur   2/8/2021

COVID-19 has had a significant impact on the facility management sector. There are three major trends expected to take place in 2021: 1. Customizing the user experience; 2. Integrating systems with AI and robotics; and 3. Using green buildings and sustainable building practices.

“The way we live and work every day or manage operations in physical space is no longer simple. So, facility management is a key area we must diligently consider and adapt for the future by adopting newer strategies and measures. Digital transformation in commercial buildings can be achieved by making people, process, and technology work together. This will also help us successfully curb the spread of the infection by focusing on safety and delivering and demonstrating employees a hassle-free COVID-19 experience.”

Read the full article here.

Infraspeak  1/31/2021

Within the facility management sector, there are some exciting trends for 2021 that include remote control access to applications and AI-based predictive maintenance, among others.

“If there’s one thing COVID-19 brought to the forefront, it’s remote monitoring. Fortunately, facility managers had IoT on their side. Sensor technology has almost endless applications in facility management, including asset tagging, lighting, HVAC, fire suppression, security, inventory management, and equipment monitoring. As a curiosity, in 2015 McKinsey estimated the IoT market would be worth $11.1 trillion by 2025, and that it would cut the costs of chronic disease treatments up to 50%. In 2017, Gartner estimated there would be roughly 20 billion devices connected to the Internet, while Cisco put that number at 50.”

Read the full article here.

Public Markets1

Historical Stock Prices – Last 5 Years

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Historical Median TEV/LTM EBITDA Multiples – Last 5 Years

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Notes: Sub-sector indices weighted by stock price.

1. S&P Capital IQ, As of 2.12.2021

Public Markets1

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1. S&P Capital IQ, As of 2.12.2021

Economic Trends

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Note: A PMI Index figure greater than 50 indicates expansion.

2. U.S. Bureau of Economic Analysis

3. The Conference Board

4. U.S. Bureau of Labor Statistics

5. U.S. Department of Labor

6. US Census

7. Institute for Supply Management

M&A Market Trends1

Commercial & Industrial Services M&A Volume by Year

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Representative Commercial & Industrial Services M&A Transactions

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1. S&P Capital IQ, As of 2.12.2021

2. Announced on 10.9.20 and expected to close on 3.1.21

1. S&P Global Capital IQ

2. U.S. Bureau of Economic Analysis

3. The Conference Board

4. U.S. Bureau of Labor Statistics

5. U.S. Department of Labor

6. US Census

7. Institute for Supply Management

 

Public Comparable Companies:

Facility & Field Services: ABM Industries, Aramark, Cintas Corporation, Compass Group, ISS, Mitie Group, Sodexo, EMCOR Group, UniFirst Corporation, Rentokil Initial, ServiceMaster Global, Stericycle

Environmental Services: Clean Harbors, US Ecology, Heritage-Crystal Clean, Veolia Environment, Ecolab, Suez

Property Management: Jones Lang LaSalle, CBRE Group, FirstService

Safety & Security: G4S, Prosegur, Securitas

Waste Management: Advanced Disposal Services, Casella Waste Systems, Republic Services, Waste Connections, Waste Management

Testing, Inspection & Certification: ALS Limited, Bureau Veritas, Eurofins Scientific, Intertek Group, SGS