What the current market looks like for valuations, buyers, and the forces shaping the sector.
The Fire Safety Act 2021 and the Building Safety Act 2022 have transformed the regulatory environment. Fire risk assessments are now mandatory on all commercial premises. Building owners carry explicit, documented responsibility for ongoing fire safety compliance. BS 5839 alarm upgrade cycles are being enforced more strictly than ever.
The result is a structural uplift in compliance spending, growing at around 15 percent annually. Fire safety businesses with BAFE SP203 certification, a strong recurring maintenance contract book, and qualified fire alarm engineers are directly benefiting from this shift. Every commercial building in the UK now needs documented, ongoing compliance work, and that work has to be done by accredited businesses like yours.
This is not a short-term cycle. It is a legislative change that has created permanent, compounding demand. Buyers know this, and the premiums being paid for well-run fire safety businesses reflect it.
Over 100 PE-backed fire safety acquisitions were completed in 2024 and 2025 combined. Groups like Marlowe Fire & Security have built nationwide platforms through rolling acquisition programmes, assembling regional businesses into integrated operations with shared compliance infrastructure, central back-office, and coordinated sales teams.
They target businesses with:
For independent owners, this means more buyers competing for your business, which drives valuations up. The window of peak consolidation activity does not last forever, and businesses that are well-positioned now are attracting the strongest interest.
To illustrate how valuations work in practice, here is a representative example based on typical market transactions.
What pushes towards 7x: BAFE SP203 plus a recurring contract book above 70 percent signals exactly what PE buyers want. Multiple BAFE schemes (SP101, SP207) broaden the service offering. Low owner dependency means the business runs without the seller. LPCB third-party certification can add a further 0.2 to the multiplier.
What pushes towards 5x: Geographic spread across a wide area reduces route density. Heavy reliance on a single large client introduces concentration risk. A heavily domestic mix without commercial compliance contracts may limit the buyer pool.
Every business is different. This example illustrates the methodology, not a promise. Your valuation depends on your specific circumstances.
Business Asset Disposal Relief (BADR) provides a reduced Capital Gains Tax rate on qualifying business disposals up to £1 million. The rate has been increasing in stages, and from 6 April 2026 it rises to 18 percent.
| Before 30 Oct 2024 | 30 Oct 2024 to 5 Apr 2025 | 6 Apr 2025 to 5 Apr 2026 | From 6 Apr 2026 | |
|---|---|---|---|---|
| BADR Rate | 10% | 10% | 14% | 18% |
| Tax on £500K gain | £50,000 | £50,000 | £70,000 | £90,000 |
| Tax on £1M gain | £100,000 | £100,000 | £140,000 | £180,000 |
These are simplified illustrations. Capital Gains Tax calculations depend on your personal circumstances. Always take advice from your accountant.
The rate change is legislation, not speculation. For a £500,000 gain, the difference between 14 percent and 18 percent is £20,000. For a £1 million gain, it is £40,000. If you are already considering a sale, starting the process now gives you the option of completing before the deadline.
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