Leading Beauty Investment Bankers on What Makes M&A Tick Today
Baird's Beauty & Wellness team was recently recognized as one of the leading beauty investment banks by Beauty Independent. Especially in today's uncertain market in which beauty brands can be difficult to value, investment bankers can be incredibly valuable in assessing risks and upsides of transactions, navigating challenging process dynamics and ensuring a successful transaction outcome.
“The velocity of deals has increased dramatically over the past five to 10 years,” said Lauren Leibrandt Director, Baird. “The universe of buyers and investors in the beauty and wellness landscape is now larger and broader than ever. Some of the most influential transactions over the past decade driven by strategic buyer activity have demonstrated how attractive and lucrative exits can be. Beauty companies typically demonstrated high growth with a very compelling margin profile. The exit opportunities for private equity investors are tremendous as strategic acquirers have been very active and willing to pay high multiples.”
Regarding categories of interest going forward, “there is still tremendous runway in haircare and skincare, and it’s been nice to see the rebound that the color cosmetics space has had recently. We’ve also seen a recent surge of interest from the investor world in med-spas and beauty services. More broadly, I’m interested in categories that were once considered taboo like hair loss, skin conditions, acne, and sexual wellness. There is tremendous runway ahead for brands that can successfully combine product or service with education, community and mission-based principles.”
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