The BoF Podcast | Vennette Ho on the Future of Beauty M&A

At The Business of Beauty Global Forum 2024, Vennette Ho, managing director and global head of beauty and personal care at Financo Raymond James, shared insights on the evolving landscape of mergers and acquisitions (M&A) in the beauty sector. Joined by Imran Amed, BoF founder and editor-in-chief, the session focused on how changing consumer needs are reshaping corporate strategies.

Ho emphasized the critical role of consumer expectations in driving M&A activity. “M&A happens when there’s a fundamental change in the consumer. The consumer needs and the consumer wants are something that the strategics today don’t have,” she said, highlighting that acquiring indie brands helps meet these evolving demands. Large companies often lack the internal resources for innovation and thus turn to acquisitions to stay competitive.

For founders, Ho recommends getting to know potential acquirers early. “It also goes for the other side that they feel like they know you and you can have a better alignment from the beginning,” she added. This mutual understanding helps ensure a smoother integration post-acquisition, which Ho believes is crucial for long-term success.

Looking ahead, Ho forecasts a breakdown of traditional beauty categories. Consumers are more focused on brand engagement than brand type, paving the way for more versatile brands that can operate across various market segments. This trend resonates with buyers seeking diversified and innovative product portfolios.

In summary, as consumer dynamics shift, so does the necessity for strategic M&A activity. Brands that understand and anticipate these changes will be better positioned for growth and success in the competitive beauty industry.