Business Categories Reports Podcasts Events Awards Webinars
Contact My Account About
Member Exclusive

Q2 2022 Deal Flow: Why the Heck Is Beauty So Resilient?


Published August 7, 2022
Published August 7, 2022
Shutterstock

Beauty industry deal activity during the second quarter was surprisingly robust. The BeautyMatter Deal Index tracked a total of 92 deals during the quarter, an 8.9% decline versus Q2 2021. Beauty deal activity in the first half of the year was down 2.9%. In the context of total global deal activity during the first half of 2022, the beauty industry has fared quite well. According to EY, global deal volume was down 18.0% in the first half versus last year, making beauty’s 2.9% decline seem negligible.Growth investments (seed, venture, minority stakes) dominated the second quarter, comprising 61.0% of deals. M&A (traditional mergers, acquisitions, and majority stakes) comprised only 37.0% of deals during the second quarter, down from 45.0% last quarter. Whereas growth investments continued to be buoyed by VC and PE firms with a longer-term perspective, eager to put capital to work, M&A deals were negatively impacted by rising costs of capital, extreme volatility in public debt and equity markets, and general cautiousness around economic headwinds affecting the industry. 41.0% of M&A deals during the quarter involved the supply side, a corner of the beauty industry that is typically more asset and technology intensive and, therefore, a bit easier to finance.

×

2 Article(s) Remaining

Subscribe today for full access