Analysis by mid-market M&A and debt advisory firm, Livingstone, states the sector was valued at £125bn in 2016.
M&A activity has enjoyed a resurgence over the past five years, with a 96% increase in overall deal activity occurring since 2012.
The sector recorded 51 transactions in 2016, and with nearly 20 deals already made this year, the figure is nearly as many as were made in the entire of 2012.
Hard facilities services, such as maintenance, refurbishment and mechanical services have made up the majority (59%) of M&A activity over the past 5 years, with Mechanical and Electrical (M&E) being the most popular sub-sector, accounting for 29%.
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In addition, there has been a large spike in M&E transactions in the past two years, with 43 deals being made in 2015-16 compared to just 23 for the period of 2012-14.
Livingstone said the results indicate despite geopolitical issues such as Brexit, the market has maintained "a degree of resilience". The analysis also highlights a stable economy and weak pound has renewed foreign interest in UK assets associated with the building and facilities services sector.
Jeremy Furniss, Partner at Livingstone, said: "The M&A markets have demonstrated great resilience in the face of daunting levels of uncertainty driven by the slew of geopolitical developments, not least of which is the growing reality of the UK operating outside of the EU.
"In many ways, this should not surprise us. The UK has always enjoyed a head-start in developing innovative solutions which the rest of the world has increasingly shown interest in accessing through acquisition. However, as the pressure to address escalating employment costs and regulatory scrutiny grow, the UK's talent for innovation and creativity will have to rise with it.
"For the time being though, the UK's place as a facilities and services market of strategic interest to the rest of the world is likely to sustain deal activity well into the foreseeable future."
(LM/MH)
