Default Company
Buy Side Mandate

Private Equity Firm Seeking Utilities Services Companies in North America

Industry Focus Commercial Services, Construction, Engineering Services, Industrials, Oil & Gas
Region United States, Canada
Size - Revenue Between $5 - $250 Million
Size - EBITDA Between $1 - $50 Million



Investor Overview

Excellere Partners (pronounced, “X-cell-leer), a Denver-based private equity firm with $1.36 billion of capital, was founded to partner with entrepreneurs in building industry leaders through a buy-and-build investment strategy.

Investment Strategy: Excellere partners with entrepreneurs and management teams to execute a buy-and-build investment strategy by deploying its proven, proprietary Value Creation Process and Project Expert Network.

Partnering with Excellere: Excellere believes that enduring success is created when a transaction becomes a true partnership. Excellere believes that over time success will be measured by the success of the entrepreneur and the enduring legacy created together.

Investment Thesis

The United States natural gas infrastructure consists of more than 2.0 million miles of distribution and another 300,000 of transmission pipelines while the electricity network is comprised of approximately 5,400 interconnected generation facilities, 450,000 miles of high voltage transmission lines, 55,000 substations, and six million miles of low-voltage distribution lines. Much of this infrastructure was constructed decades ago, with greater than 60% of the natural gas infrastructure installed more than 40 years ago and approximately 70% of both transformers and transmission lines at least 25 years in age, creating a significant level of maintenance to ensure system reliability and safety.

Utility services providers offer inspection, testing, engineering, maintenance, repair, and replacement services that enable their customers to limit disruptive outages, prevent catastrophic failures, comply with Federal and statutory regulations, and help increase the efficiency of their underlying operating assets. Utility services providers will continue to benefit from a number of tailwinds, including (i) increased consumer demand for reliable gas and power delivery (ii) aging infrastructure requiring significant investment, including repair and replacement (iii) client outsourcing trends as utilities seek to convert fixed costs to variable costs (iv) tightening regulatory standards imposed by Federal and state agencies such as PHMSA, NERC, and state public utility commissions and (v) technology advancements that enable customers to more effectively manage their operating assets.

Investment Criteria

FINANCIAL PARAMETERS

  • Targeted minimum EBITDA of $5.0 million for platform acquisition
  • Stable recurring revenue and higher margins, reflecting a strong value proposition
  • Diversity of revenue streams supported by numerous client relationships, multiple service offerings, and demonstrated growth through cross-selling

INVESTMENT CRITERIA

  • Subject matter expertise
  • Longstanding customer relationships
  • Substantial switching costs
  • Meaningful component of value chain
  • Demonstrated growth and vision
  • Technology enabled capabilities
  • Required certifications & qualifications

TARGET CAPABILITIES

  • Testing and inspection
  • Maintenance and repair
  • Damage prevention
  • Engineering
  • Regulatory support
  • Program and project management
  • Data analytics & records management
  • Geospatial systems and services

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