The New Rules for Getting Acquired
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Dollar drifts as investors ponder Fed independence ahead of Powell speech
By Ankur Banerjee SINGAPORE (Reuters) -The U.S. dollar drifted on Thursday as investors fretted about the Federal Reserve's independence after yet another attack from President Donald Trump ahead of remarks from Chair Jerome Powell later this week that could influence the outlook for rates. Trump called on Fed Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the U.S. central bank. Cook said she had "no intention of being bullied to step down" from her position at the central bank. Trump has also told aides he is considering trying to fire Cook, the Wall Street Journal reported on Wednesday. "It has the potential to raise questions around the Fed's oversight and regulatory functions but it has little to no near-term monetary policy implications," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities. That explained the relatively muted reaction in the currency markets to the news as the dollar initially dipped on the news but was mostly calm into the Asian session. The Japanese yen held onto gains made in previous sessions and was little changed at 147.41 per dollar, while the euro was steady at $1.1642. Sterling last fetched $1.34535. That left the dollar index, which measures the U.S. currency against six other peers, steady at 98.301. Trump has repeatedly criticised Powell for being too slow to cut rates, stoking investor worries about the central bank's independence and its credibility. Investors expect Trump will replace Powell with a more dovish appointment when his term ends in May. Trump earlier this month said he would nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a vacant Fed seat after Adriana Kugler unexpectedly resigned. Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney, said if Cook resigns it would create another opening for Trump to appoint a Fed Governor who will vote to lower interest rates. "Perceived political interference in the Federal Reserve can undermine its independence, steepening the yield curve and denting the USD's safe haven status." POWELL SPEECH The main focus this week has been on whether Powell will push back against market expectations for a rate cut at the Fed's September 16-17 meeting when he speaks on Friday at the Jackson Hole meeting, following a weak jobs report for July. "Markets are adamant that recent labour market data necessitates some policy calibration and are expecting Chair Powell to tip his hat in that direction," TD's Newnaha said. Traders are pricing in an 82% chance of a 25-basis-point rate cut next month, CME FedWatch tool showed. While the odds have lowered from last week after hotter than expected producer price inflation tempered expectations, investors are still pricing in over 50 bps of easing this year. Some analysts cautioned that markets could end up being disappointed by Powell's speech, noting that the impact of Trump's tariffs on inflation remains uncertain. "It is not clear that Powell will deliver strong guidance," said Benoit Anne, managing director in the investment solutions group at MFS Investment Management. If the dovish signals elude us, there will be significant pricing out of the odds for a September cut." In other currencies, the New Zealand dollar was nursing steep overnight losses at $0.58205 after diving 1.2% to its lowest level since April. New Zealand's central bank cut interest rates on Wednesday as expected but left the door wide open to yet more easing if needed. The Australian dollar eased 0.13% to $0.64245, hovering near a two-week low. [AUD/] Sign in to access your portfolio
Washington Post
6 minutes ago
- Washington Post
ICE aims to spend millions on decked-out vehicles for D.C. operation
Immigration and Customs Enforcement is seeking to spend millions of dollars on SUVs and custom, gold-detailed vehicle wraps emblazoned with the words 'DEFEND THE HOMELAND,' according to a contractor's social media post and records that describe the decked-out fleet as urgently needed in President Donald Trump's stated mission to improve safety on the streets of the District.
Fox News
18 minutes ago
- Fox News
Vance tells Musk to stay 'loyal' to Trump's Republican Party amid third party speculation
Vice President JD Vance cautioned Elon Musk against forming a third political party in an exclusive interview on "The Ingraham Angle," saying the billionaire could wield more influence by staying "loyal" to the Republican Party and President Donald Trump's MAGA movement. "My advice to Elon would be to try to fix the Republican Party. Try to push it in your own way. Disagree with me all you want, disagree with the president of the United States, but don't pretend that you can make a big difference with a third party," Vance said Wednesday. "I think Elon would make a much bigger difference if he stayed loyal to President Trump's Republican Party, and if he had disagreements, express those disagreements from the inside as opposed from the outside." The former Ohio senator's comments came after The Wall Street Journal reported Musk is pausing plans to start the America Party to focus on his companies. Fox News parent Fox Corp. and The Wall Street Journal parent News Corp share common ownership. Musk announced in a post on his social media platform X, formerly Twitter, in July that the America Party would be formed to give people their "freedom" back, amid criticism about the two-party system. "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy," he wrote. The former special government employee who served in an advisory role at the Department of Government Efficiency (DOGE) publicly split with Trump earlier in 2025 over his support for Trump's "big, beautiful bill." Musk argued the bill would add trillions to an already ballooning U.S. national debt and could undermine DOGE's work of cutting government spending. Musk's allies, according to the WSJ, said the SpaceX CEO hasn't officially ruled out creating the new party and could change his mind. "I do think that it would be a huge mistake for Elon to go forward with a third party, and my argument to him is whether you like it or not, you are now perceived by the far-Left as on the side of the American Right," Vance told Fox News host Laura Ingraham. "You believe in law and order, you believe in closed borders, you believe in economic growth and prosperity, you believe in making things in the United States of America. The idea that Elon is ever going to go back to being sort of in the middle, where Democrats and Republicans both like him, that's just not going to happen. He is perceived as being on the American Right." The vice president also denied talking to Musk or other donors about a potential 2028 presidential run amid reports that the world's richest man could financially back Vance. Reuters reported that Musk's America PAC spent nearly $300 million during the 2024 election in favor of Trump and other Republican candidates.
