Industry Focus and Expertise

Industries

Excellere focuses on a select group of industries, ensuring that we are a knowledgeable and additive partner, not just a passive investor.

Excellere begins its industry selection process by identifying sectors that exhibit extraordinary growth from favorable macro-economic and demographic trends and will benefit from consolidation through Excellere’s buy-and-build investment strategy.

Combined with the firm’s significant investment experience, Excellere diligently and systematically researches possible industry segments, reaching across a vast network of relationships and participating in industry events.

This provides four primary benefits:

Certainty

Our historical experience and deep industry knowledge significantly reduces false starts and uncertainty during a transaction.

Agility

Emerging businesses must be agile. An informed partner like Excellere creates opportunities to develop a thoughtful shared vision for the business while preserving the organization’s entrepreneurial spirit.

Consistency

Excellere also provides a greater sense of perspective and balance as the company encounters challenges and attempts to exploit opportunities. A knowledgeable business partner such as Excellere empowers collaborative decision making and communication.

Value-Added

As an investment firm focused on a select group of industries, Excellere understands the business and, therefore, can be more value-added and supportive.

Healthcare

The healthcare industry’s growth combined with Excellere’s breadth and depth of healthcare expertise presents an opportunity to build something extremely unique in a dynamic industry.

Industry Description

U.S. healthcare, including outsourced life science and med-tech sectors, is a highly fragmented, $2.5-plus trillion industry and a growing component of the economy.

Value Proposition

Experts agree that the U.S. healthcare system contains many inefficiencies, excessive administrative expenses, inflated prices, and in certain cases, inappropriate care, waste and abuse. The private sector regularly discovers new and entrepreneurial ways to improve healthcare's efficiency and delivery.

Within the life science and med-tech sectors, drug and device developers increasingly outsource many functional elements of their businesses, including clinical trial operations and manufacturing, to focus on their core competencies.

Growth Characteristics

According to the CMS Office of the Actuary, total U.S. healthcare expenditures are projected to grow twice as fast as inflation through 2018. Many factors contribute to the projection, including continued population growth, the “graying” population, increasing obesity and overall poor lifestyles, and increased development efforts by pharmaceutical and biotech companies.

Segments of Interest

Specialty hospitals and ambulatory surgery centers, urgent care centers, specialty pharmaceutical distributors, and managed care companies.

Key Investment Characteristics
  • Stable reimbursement/pricing environment
  • Compelling value proposition
  • Truly differentiated company excelling in a fragmented niche
  • Moderate Medicare and Medicaid exposure and single payor and/or customer concentration
  • Regulatory and compliance integrity - compliance before growth mentality

Business Services

Inefficiencies in the value chain of services can no longer be ignored in today’s global economy. Fierce competition compels businesses to refocus on core capabilities and strategically partner with specialized service providers offering greater productivity at lower overall cost.

Industry Description

Companies responding to greater global competition increasingly outsource non-core functions that were once managed internally. Companies seeking improved operating performance and the related financial benefits strive to increase efficiency by eliminating non-core functions that specialized service providers can provide at a lower cost. These trends allow companies to focus on their competitive strengths and create a market for outsourced services.

Value Proposition

Business service providers offer value-added solutions that streamline operational processes. These strategies enable outsourcers to convert fixed costs, such as labor, into variable expenses, significantly increasing operational flexibility while increasing quality. Business service providers are a critical component of their clients’ value chain and key partners in their strategic direction, growth, and long-term success.

Growth Characteristics

Business Services is the third largest industry in the United States. The industry’s growth is driven by businesses refocusing on core competencies and outsourcing non-core functions. As the business services industry evolves, providers that offer a full suite of services and solutions will capture a greater share of the outsourcing market.

Segments of Interest

Niche outsourced providers of business services, insurance services, cyber security services, testing and inspection companies, regulatory and risk management services, and distribution and logistics providers.

Key Investment Characteristics
  • Recurring and predictable revenue stream
  • Value-added capabilities with high perceived value by customers
  • Partnership with diverse set of clients
  • Opportunity to offer existing clients additional services and capabilities
  • History of adding new customers

Industrial Growth

Leading product and service providers are benefitting from the emergence of new technologies, which are enabling the evolution of the manufacturing base and modernization of infrastructure.

Industry Description

The Industrial Growth industry is driven by the multi-faceted value proposition offered by companies that enhance productivity, quality, compliance, and safety for customers in industrial and commercial settings. North American manufacturers and industrial operators are increasingly relying upon differentiated product and service providers to deliver new technologies and solutions that allow them to stay competitive in the global marketplace.

Value Proposition

The aging of industrial and infrastructure assets in North America as well as increasing global competition in manufacturing will provide significant opportunities for companies whose products and services focus on productivity, cost-efficiency, extending the useful life of machinery and equipment and leveraging data and analytics to improve operations. In addition, as corporate managers reduce manual labor and seek efficiency and cost advantages, they will gravitate toward service providers and products that enhance profitability, quality, and safety.

Growth Characteristics

The aging of industrial assets and infrastructure, the advancement of “smart” industrial technology, enhanced engineering/technical capability, increased focus on application expertise, ever-tightening regulatory landscape, and continued outsourcing trend will drive sustained growth in the industry.

Segments of Interest

Specialty Chemicals - Inhibitors, Additives, Biocides, Lubricants & Process Chemicals

Value-Added Services - Testing, Inspection & Certification, Remote Monitoring, Predictive Maintenance, Maintenance & Repair and Supply Chain

Highly Engineered Products - Consumables, Components, Sensors, Test & Equipment and Packaging

Industrial Automation - System Integration, Controllers, Data Collection & Analysis, Monitors.

Key Investment Characteristics
  • Differentiated technology and track record of engineered solutions
  • Value-added service offering to customers and potential customers
  • Strong margin and growth profile
  • Track record of retaining customers
  • Diverse products, customers and end-markets
  • Entrepreneur with a vision for growth