• Fireside chats replacing formal launches and sending out books
• High quality assets like Rhode are still seeing buyer interest

Beauty industry deals are moving at a slow pace compared to previous years, with only 29 transactions so far this year in the US, compared to a recent peak of 121 deals in 2021. High-quality assets are looking to more informal, fireside chats instead of launching formal auction processes, and can linger for a long time before finally finding an acquirer.

It’s a buyer’s market where strategics and sponsors can be more selective when looking at beauty assets. However, ongoing informal talks can also move deals along much more quickly when the right buyer eventually expresses interest in the asset, compared to formal, competitive processes.

Brian Yue, Mergermarket’s New York-based consumer reporter, joins Dealcast host Julie-Anna Needham to discuss dealmaking in the beauty sector, including:

• How trending, well-branded assets have overcrowded the space, refocusing buyers’ attention toward science-backed or dermatology-focused companies;
• Which companies have successfully transacted, looking at examples like the sale of Hailey Bieber’s Rhode to e.l.f. Beauty for USD 1bn;
• How consumer spending and larger factors are impacting beauty sector dealmaking;

All this and more in this week’s Dealcast.