The New Rules for Getting Acquired
If 2025 has proved anything, it's that there's always an M&A market for fashion and beauty companies that offer investors the right value.
After an active start to the year that saw brands from True Religion to Huda Beauty's luxury fragrance line Kayali find homes with new owners, the unveiling of US president Donald Trump's sweeping tariffs in April and the economic uncertainty they unleashed threatened to cut the momentum short. Instead, the subsequent weeks saw a flurry of blockbuster transactions, including E.l.f.'s $1 billion acquisition of Hailey Bieber's beauty brand Rhode; Prada's $1.4 billion acquisition of Versace; Skechers' $9.4 billion buyout by private-equity firm 3G; and Dick's Sporting Goods' purchase of Foot Locker for $2.4 billion.
While the examples are mostly legacy names, they underscore the point that deals can happen in any climate — when the right brand connects with the right buyer.
Making that connection doesn't always come easily though, particularly in today's market. What's changed over the past several years is acquirers have become more discerning than ever. They're seeking strong, emotionally resonant brands with a healthy bottom line or a clear path to profitability — and often healthy unit economics, meaning profit on each item sold — rather than prioritising rapid growth at all costs.
'It's not all assets finding homes,' said Brandon Yoshimura, a director at investment bank Solomon Partners, where he focuses on M&A and fundraising for next-generation brands. 'Really excellent assets are finding buyers.'
Tariffs and economic shocks will only make investors more skittish about funnelling money into the apparel sector, according to Scott Geftman, former president at preppy apparel label Rowing Blazers, which was acquired by private equity firm Burch Creative Capital in February 2024.
But brands that show they can weather the turmoil will emerge more attractive. What every business looking for a deal today needs to prove is that it can offer long-term value, with a compelling mix of financial stability and brand equity.
In this case study, The Business of Fashion breaks down how start-ups like Hero Cosmetics (sold to consumer goods company Church & Dwight for $630 million in 2022), Rowing Blazers (sold to private-equity firm Burch Creative Capital for an undisclosed sum in 2024) and Summer Fridays (which sold a significant stake to private-equity firm TSG Consumer Partners in 2024) brokered their deals over the last three years.
It explores how they made themselves appealing to potential buyers, forged early relationships with investors and ultimately found acquirers that would maintain their brand integrity while taking their businesses to the next level.
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