Every year, BeautyMatter honors one person who has made an outstanding contribution to the beauty business and has been a catalyst for the industry's advancement. This year’s honoree is Vennette Ho, Managing Director and Head of Beauty and Personal Care at Raymond James. BeautyMatter co-founder and CEO Kelly Kovack sat down with Ho at the BeautyMatter NEXT Awards in Los Angeles, California, to discuss her remarkable work in shaping the financial landscape of the beauty and personal care industry.
When BeautyMatter asked Ho if she would accept this award, the first thing she said was, “Investment banking is a team sport. It's not just me.” As much as Kovack agreed that it takes a team effort to make deals happen, she emphasized that Ho’s leadership and strategic expertise are what set her apart and why she received BeautyMatter’s Person of the Year Award.
When it comes to selecting projects, Ho says it’s a two-way street, with both the banker and the brand evaluating whether it's the right fit. Ho emphasized that time is our most precious commodity, which explains why Raymond James is so selective about the deals they take on. They carefully assess whether they can truly help and support a particular company in the way it needs. Ho looks for a shared vision, asking, "Can we help this particular company? Can we help this brand? Do we see a way that we can support this company in the way that they want or need to be supported?"
Importantly, Ho is also humble about her own capabilities, acknowledging when Raymond James may not be the best-networked firm to handle a certain type of deal or situation. They approach the vetting process with "stark honesty" to ensure they can truly be effective partners to their clients.
Ho emphasized the close relationship that develops between her firm and their clients during the deal process. As she explained, "Our clients often say to us, ‘I talk to you more than I talk to my husband or wife,’ so you have to really feel a synergy."
Raymond James has a unique approach of working with founders from the very beginning, even before they officially become clients.
"We have a great track record of working with founders from when they're very small, even before we can take them on as clients, and then really supporting and tracking the company throughout time until they're ready for that big exit, which can be years," says Ho.
This patient, relationship-driven model allows Ho to truly understand the founders and their businesses and provide tailored support throughout their growth journey. Rather than just parachuting in for a single deal, Ho positions Raymond James as a trusted partner that can guide founders from the nascent stages all the way to a successful, high-stakes exit.
According to Ho, reaching $100 million in sales is no longer the same milestone it once was. As she stated, "$200 [million] is the new $100 [million], and I say that a little cheekily, but I think it's a little bit true because the reality is that the market dynamics are different."
Today, independent brands can more easily reach $100 million or even $200 million in sales without the backing of a large strategic partner. This is due to factors like brands having more ways to engage directly with consumers, retailers being more open to carrying indie brands, and the overall infrastructure supporting faster growth. Ho noted that the "goal post" for what is considered a successful, scalable brand has shifted. A company hitting $100 million used to be a major benchmark, but now it's more common, and the focus is on the sustainability and repeatability of that growth. As she put it, "it isn't necessarily a hard and fast threshold anymore."
As more independent brands reach these higher sales levels, the deals and transactions in the beauty industry will need to grow accordingly to continue moving the needle. Ho expects to see larger deals from strategic acquirers as they seek to make more impactful acquisitions.
There has been a lot of deal flow chatter this year, with two contrasting dynamics at play. On one end, there has been a lot of discussion about how difficult fundraising has been and the number of business closures. This is part of the natural business cycle, where there were likely many brands that launched when the bar was low. On the other end, there are a lot of brands looking to exit, but not as many deals actually getting completed.
Ho attributed this to a temporary market dynamic, where there are a lot of shifts happening, including management turnover and leadership changes happening at highest level of major companies. This is causing a "giant reset moment" as these companies need time to understand their existing business and figure out their M&A priorities under the new leadership. Additionally, there’s disruption in the public markets, with companies going public and private, which could also be contributing to the slowdown in completed deals.
However, Ho expressed optimism that this is a temporary situation, and that the underlying strength of the beauty and wellness industries will continue to drive M&A activity in the long run. She sees the current dynamics as more of a "funky point" rather than a holistic commentary on the industry.
Ho believes that the lines between traditional beauty categories are becoming increasingly blurred.“The old structures of what beauty is, how we buy it, and how the consumer engages, are collapsing as we speak," she says.
The wellness category has fully merged into beauty, and beauty is now creeping into adjacent areas like women's health and sexual wellness. Products and brands are no longer neatly confined to traditional definitions like "prestige" or "mass." This dynamic industry evolution is "forcing a lot of people to think differently in terms of their strategy, of both how they're structured and also what counts as beauty."
Investment firms are struggling to keep up with these changes, as they don't always have the infrastructure in place to evaluate and integrate these new, more holistic beauty and wellness offerings. For Ho, these are the kind of deals that she loves to work on.
"Some of the most exciting deals are those that push the envelopes of what is traditionally considered ‘beauty,’ and it's really fun to think about it, and it's really fun to work with."
The conversation touched on the importance of product assortment and balance for beauty brands. Ho explained that brands with an iconic "hero" product tend to be more capital-efficient and effective at customer acquisition. These hero products serve as an easy entry point for consumers into the brand, lowering the cost of customer acquisition. From there, the goal is for the consumer to then explore and purchase other products in the brand's assortment.
Ho noted that retailers often push brands to launch new products constantly. However, she emphasized the value of keeping the product assortment focused and efficient rather than trying to be in every category all at once.
There was also a discussion around the perceived hierarchy of different product categories. Ho explained that complexion products are generally viewed as having higher multiples than categories like lip or eye, due to the repeatability and consumption patterns of complexion items. The key, according to Ho, is finding the right balance and focus for the brand—having consistent, mainstay franchises that drive repeat purchases, rather than constantly chasing the newest trends. Maintaining that brand integrity and efficiency is crucial, even as retailers push for constant product expansion.
On the topic of “dupe” brands, Ho acknowledged that this is an interesting area, but noted that investment firms can be wary of brands that are straight-up dupes of existing products in their portfolio. They don't want to create internal conflicts by acquiring something that directly cannibalizes their own offerings.
However, Ho explained that there is a spectrum when it comes to dupes. Brands that take inspiration from luxury products but put their own unique spin on them tend to be more palatable. The level of duplication matters—if it's an overt copy versus a creative interpretation, that can make a difference in terms of acquisition potential. Ho cited the example of e.l.f. Cosmetics, which started with some dupes but evolved to have its own distinct identity and offerings. Brands that borrow inspiration but add their own flair are more likely to find exit opportunities compared to a straight-up copycat brand.
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