UK fire and security sector M&A review 2025
Deals round up and seven ways to maximise the value of fire safety and security services companies
Fire and security services assets continue to dominate built environment, compliance and technical services dealmaking. We explain why and share the value drivers every buyer and seller needs to consider.
By Usman B Malik and Retief Swart
Companies providing services into the built environment remained a hot investment target in 2025, with 184 deals completing – reinforcing the sector’s consistently strong annual M&A performance. Within that stable yearly picture, quarterly patterns moved around the trend: Q1 was one of the slowest periods in recent years, with just 29 deals, reflecting a more cautious market in the aftermath of the US election, wider macroeconomic uncertainty, and the lead‑up to the UK Autumn Budget. In contrast, Q4 delivered a record 60 transactions, supported by easing interest rates, renewed budget visibility, and a clear uplift in investor confidence. Despite these short‑term swings, the annual volume highlights the sector’s enduring resilience and steady investor appetite.
UK Facilities Services M&A - Quarterly Deal Activity
Source: Grant Thornton UK proprietary facilities services M&A tracker
UK Facilities Services M&A - Yearly Deal Activity
Source: Grant Thornton UK proprietary facilities services M&A tracker
Competition was strong across the buyer spectrum
Private equity featured in 58% of completed deals (including 46% through PE‑backed trade buyers), with pure trade buyers making up the remaining 42%.
UK Facilities Services M&A - Deal Activity by Acquiror Type
Source: Grant Thornton UK proprietary facilities services M&A tracker
Consistent with recent historical trends, fire and security services remained the most popular subsector, accounting for 23% of all deals.
UK Facilities Services M&A - Target Sector Split - number of deals
Source: Grant Thornton UK proprietary facilities services M&A tracker
Why is private equity targeting fire and security?
| Fire and security % deal split by buyer type | ||
|---|---|---|
|
Buyer type
|
Year
|
|
|
2024
|
2025
|
|
|
PE-backed corporates
|
57%
|
70%
|
|
Pure private equity
|
11%
|
12%
|
|
Pure corporate buyer
|
32%
|
19%
|
Source: Grant Thornton UK proprietary facilities services M&A tracker
In 2025, private equity–backed businesses, including several active consolidators, accounted for the majority of fire and security transactions, driving 70% of all deals in the sector. This compares with 46.2% across the wider facilities services market and highlights the intense buy‑and‑build competition for fire assets.
This contributes to a wider trend of PE (and trade) buyers chasing regulatory driven, compliance and hard/technical facilities services assets – in 2025, hard/technical services assets accounted for 80% of all facilities services M&A.
So, what’s making the fire and security so attractive?
A fragmented market presents consolidation opportunities
Despite several years of high M&A deal volumes, the UK fire and security sector remains highly fragmented, with many businesses still under owner-management, particularly in the sub £1 million EBITDA size. This presents an opportunity for consolidators and buy-and-build platforms.
New Path’s buy-and-build success story
The success of New Path Fire & Security (New Path Fire) illustrates the opportunity a fragmented market presents for PE-backed buy-and-build vehicles.
New Path Fire was founded in 2020 as an acquisition platform to roll-up fire and security systems companies, securing backing from Duke Capital in 2022.
To date, the group has acquired 14 businesses, enabling it to offer customers a broad range of maintenance and installation services across active fire, passive fire and security disciplines. It serves a diversified client base spanning commercial, manufacturing, SME, public sector, education, healthcare and facilities management, with activity currently concentrated in London, the Home Counties, and the south and east of England.
New acquisitions gain access to centralised functions such as finance, HR, administration and marketing, along with regional synergies and cross‑selling opportunities. New Path Fire’s integration model focuses on aligning back‑office operations while allowing acquired businesses to maintain continuity in their customer‑facing delivery. Over time, selective consolidation of teams and locations helps to unlock further efficiencies, with the group’s 14 companies now operating from eight hubs.
Regulation and insurance compliance ensures constant demand
Fire regulation has increased following the 2017 Grenfell Tower tragedy. Notably, this includes The Fire Safety Act 2021, The Building Safety Act 2022 and the creation of a Building Safety Regulator, responsible for overseeing the safety and performance of higher-risk buildings.
Spend on fire and security safety services is therefore non-discretionary, creating stable and growing demand. This insulation from wider market conditions and economic downturn makes fire and security an attractive sector for financial investors.
Additionally, increasingly the public is expecting more stringent safety and security systems and processes in their work and living spaces.
Business model is AI-insulated
The boots on the ground nature of fire and security work, such as installation, maintenance, and inspection, means services cannot be replaced by cheaper AI alternatives.
At the same time, fire and security businesses are using the technology to improve operations and enhance accuracy with tools like AI-enabled detection and building information modelling/management (BIM).
High demand for technical skills
The UK faces a fire and security skills gap, driven by retiring experts, increasing demand (especially post-Grenfell), and new regulations. Providers with the skills and competence to fill this gap can demand higher margins.
Active fire systems guarantee recurring revenues
Financial investors are increasingly courting businesses that specialise in active fire safety – systems that detect, alert, or suppress fires – such as alarms, sprinklers, and extinguishers, which typically require ongoing inspection and maintenance, leading to long-term revenue visibility.
Passive fire systems – structural measures that prevent the spread of fire and smoke without activation are often project-led, with less long-term revenue visibility associated, but the work is often a precursor to longer-term active contracts and are therefore also considered attractive. The ultimate investment target will offer both.
Strengthening debt markets are boosting general dealmaking
Confidence in the UK debt markets has continued to strengthen since 2024, with resilience carrying through into 2025. This momentum has been driven by robust private credit fundraising across Europe (with c€40bn raised in H1 2025 – a threefold increase YoY), creating a highly competitive deployment environment and resulting in borrower-friendly terms for strong credits including reduced amortisation, competitive pricing, and flexible covenant structures.
Companies and investors looking to transact in the fire safety and security sector have largely benefitted from these favourable debt market conditions, supported by the sectors strong credit fundamentals. Typical characteristics include; defensive end-markets, recurring/repeat compliance-driven revenues and demand from a broad, diversified client base where quality of service and safety expertise are consistently valued over price – making it a highly attractive and resilient sector for lenders.
Seven value drivers for fire and security systems providers
Buyers and investors in this sector consistently reward businesses with clear, defensible strengths. Beyond headline financials, the model, footprint and delivery approach matter. By understanding and deliberately building around these drivers, sellers can shape buyer perception and command stronger valuations.
Stable long‑term contracts with recurring revenue, supported by pipelines rich in active tenders, renewals and cross‑sell opportunities – particularly across multi‑year agreements – continue to underpin strong revenue visibility in the fire sector. Businesses with a proven track record of successful client renewals and long‑standing customer relationships are especially attractive to investors, as this history reinforces confidence in predictable long‑term growth.
Recurring revenues from maintenance, monitoring and inspections continue to enhance EBITDA quality, reduce earnings volatility and support higher valuation multiples. Linked to this, businesses with relatively low reliance on one‑off project work are attractive to investors, given the greater predictability and resilience.
Self-delivery (as opposed to using contractors) gives fire and safety companies greater control over quality and compliance. It reduces margin loss to contractors and removes the risk of penalty for breaching IR35 rules. It does however require enough volume, including geographical density to make it efficient. The strength of a self‑delivery model is increasingly balanced by the sector‑wide challenge of sourcing skilled engineers. Demand for fire safety work remains high, but the ability to capture it depends on securing and retaining high‑quality engineering resource – now one of the biggest constraints on growth.
A broad offering is a means to scale an existing customer base, diversify income risk and consolidate overheads. A diversified customer base in resilient, high-margin sectors, like data centres, industrial/commercial markets and social housing, will improve valuations, while reliance on a small number of clients increases perceived risk. Likewise, a broad geographic footprint (including international presence) is attractive to buyers looking to expand their own reach and capability.
Direct relationships with end customers typically command higher multiples due to lower risk and stronger margins. Additionally, end clients increasingly prefer to contract directly with the provider delivering the work.
Businesses that leverage strong systems and data capabilities increasingly stand out in the fire and security sector. As customers – particularly larger corporates – demand clearer insight into utilisation, compliance, response times and access control activity, providers able to extract, analyse and present data in a meaningful way are securing a competitive edge. Effective integration with a client’s own systems creates operational ease, enhances transparency, and deepens trust. Crucially, it also drives stickiness: when a provider becomes embedded in a customer’s digital workflow, switching costs rise significantly. Conversely, businesses lacking robust processes, data infrastructure and integration capability risk falling behind as the sector becomes more technology‑enabled. In a market where insight and efficiency matter as much as physical delivery, data‑driven service models are increasingly viewed by buyers as a core contributor to premium valuations.
Acquirers will benchmark gross profit and EBITDA margins against competitors to assess the business’s ability to absorb (or pass on) any pricing or cost shocks, such as recent increases to minimum wage and National Insurance contributions. Acquirers will additionally assess cash conversion, as this directly impacts the ability to generate free cash flow to service debt and deliver returns.
ABCA Systems
ABCA Systems, a UK-based company specialising in fire protection and security systems, is successfully expanding reach, service offering and scale through its buy-and-build strategy.
In 2025, we advised Trimountain Partners and ABCA management on the recapitalisation of ABCA Systems. In the same transaction, ABCA acquired RAAM Construction, an Enfield-based provider of fire, security and electrical compliance services.
Trimountain initially invested in ABCA systems in 2021 in a process supported by our Corporate Finance team. This fuelled organic growth and a buy-and-build strategy.
In 2024, it acquired Maintec, AGS Tech Ltd, and HBS Fabrication Northwest. These bolt-ons enhanced ABCA’s expertise, geographic reach (especially in social housing), and added complementary capabilities.
The 2025 ‘continuation vehicle’ transaction was led by Trimountain and brought in additional investor partners: ACE & Company, Ardlussa Capital, Apera, and Vorsprung Partners.
We’ve remained a trusted advisor to Trimountain since their initial investment and provided a full suite of tailored advisory services to support the refinance, including Corporate Finance, Debt Advisory, Financial and Tax Due Diligence, Tax Structuring and Valuations.
Fire and security M&A outlook for 2026
Despite high volumes of deal activity in recent years, the UK fire and security market remains highly fragmented. We expect larger consolidators to take advantage of this, buying smaller regional providers to build national-scale businesses with integrated service offerings.
On the same theme, some UK-based fire and security platforms may become targets for international players looking to expand or build out European or UK presence.
There are a number of opportunities for those wishing to sell their company, with success likely going to those who can meet and clearly demonstrate the sector value drivers.
