Top Deals in Skin and Hair Care

The beauty industry’s recent uptick in mergers and acquisitions suggests an optimistic outlook for the future of deals through 2026. Significant recent transactions include E.l.f.’s acquisition of Rhode, Ulta’s purchase of Space NK, and L’Oréal’s deals with Color Wow and Medik8. Ashleigh Barker from Lincoln International highlights the renewed market confidence, noting potential deal opportunities extending into next year.

There’s a focus shift towards skincare and hair care over makeup, with brands like Byoma and hair companies such as Amika and Camille Rose being potential targets. Dermatological brands remain in demand, exemplified by L’Oréal’s acquisition of Medik8. Other attractive prospects include Westman Atelier and Salt & Stone, while Trinny London explores funding options with a revenue goal of 4x to 5x multiples.

Distribution strategies, especially in retail, play a critical role in an asset’s attractiveness, as sustainable business models are a priority for acquirers. Indie beauty brands might face challenges competing with lower-priced K-beauty brands in the market.