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Industry / Company
Beauty & Personal Care CPG
Beyond the Balance Sheet: Seeing the Beauty Before the Buy
Strategic brand diligence uncovered growth potential and supported a successful $92M acquisition
CHALLENGE
- CEO of publicly traded company asked LPA to provide an assessment for a beauty care brand under consideration for acquisition.
- LPA perspective viewed as highly complementary to the traditional financially-focused assessments.
SOLUTION
- Based on assessments noted below, LPA recommended proceeding if other M&A analysis was favorable. Our contribution:
- Provided fast and thorough brand strength assessment
- Leveraged LPA’s proprietary Competitor X-Ray methodology to reverse engineer brand positioning of key competitors
- Identified high growth potential audiences and what would need to be true to convert
- Pressure tested growth opportunities across segments, channels, occasions
- LPA recommended and provided oversight of quant research to support assessment
RESULTS
- First year results suggest this was a successful $92M acquisition
- Immediately accretive to company metrics, with strong strategic fit, market tailwinds, and quick traction post acquisition
- At 12-months post acquisition, brand was gaining sales momentum, growing faster than category average and rising to #2 brand in segment
Client Feedback
“LPA was my first call to quickly evaluate the category landscape, brand health and future potential during due diligence; their work identified strengths, vulnerabilities and growth levers that helped shape our financial offer.”