WORLD FM DAY
June
th
4 ,
2014
Supercharging Shareholder Value
DECLAN HAYES
Managing Director
Deloitte Corporate Finance Limited
•
Introduction
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Congratulations to you all on World FM day
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Theme for this year: Focusing on how we connect with our own
organizations, how we understand our clients and importantly, how we
can tailor and share information and learning to grow individual
businesses and the profile of the wider industry
•
Supercharging stakeholder value Facilities Management is a hot
sector for investors but from which all stakeholders can benefit
•
Growing a successful business What makes facilities management a
great sector to find many of these (an independent investors
perspective).
What an investor is looking for and why FM is a popular sector
'Rules of thumb'
Areas to watch however
Stable and predictable Cashflows
- Longer the contract the better
- Bid well !
- Model well and build in contingency - Invest in good IT infrastructure
and information systems
Potential for Profit Margin Improvements
- Learning curve
- Contract expansion and 'stickiness'
- Bid director is contract director
- Contract director is an
entrepreneur
Scale / ability to Buy and build
- A platform that will permit
additional growth
- A target rich environment
- Invest too far ahead v Under
investment
- Due Diligence
Barriers to entry
-Client service culture and talented
people
-Operationally efficient
- Technological innovation inclient
service
- Timely and efficient use of
information
Existing Management team
- Critical in this industry
- Skills refresh and a balanced team
Good Exit potential
- Options
- Timing
Caveate !
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What our independent investors are most interested in at the
moment
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Truly integrated FM solution businesses
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Innovative FM providers
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Exposure to the following sectors
• Health
• Education
• Oil Field Services
Q&A
The Challenges of growing a
Facilities Management company
BILL HEATH
Managing Director
Macro International
Challenges
Company roots
• Developers, Construction, Real Estate, Single
Service provider, In-house teams
• Shareholder interest and business strategy
Service offer
• Understanding FM, developing service capabilities,
quality of delivery, work process and systems,
technology
• Quality of delivery and information management
Geography
• Where to go, market size, follow clients
• Stretching reach, loss of control
Challenges
Brand recognition
• Marketing, collateral material, web site
• Feedback
Regulations
• Commercial registration, visas, industry controls
• Keeping abreast of change
Client/Commercial
• Relationship
• The right Contract
• Payment
• Fair return and retention
Challenges
People
• Culture, team spirit
• Recruiting good people, personal links
• Retention – career, reward, recognition, thank you,
exit treatment
Thank you
bill.heath@macemacro.com
WORLD FM DAY
June
th
4 ,
2014