Determining the right multiple for Hair Care product company

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by a searcher from Brigham Young University
in Utah, USA

1yr ago

Determining the right multiple for Hair Care product company

I'm looking to come up with the valuation for a company that provides professional hair care retail and treatment products (they have proprietary products but are manufactured by suppliers). Any data on multiples would be appreciated! Thanks!

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reply by a professional 1yr ago
from Southern Oregon University in Portland, OR, USA

Please check out the full transaction data available at DealStats Transactions. redacted This will certainly be a fantastic starting point as you can pull up other similar businesses and get an understanding with financials, deal terms, and more. Let me know if I can answer any questions.

reply by a searcher 1yr ago
from University of California, Berkeley in Seattle Metropolitan Area, WA, USA

Certainly variable. Taking public comps, pure hair / body care product co's are roughly 20-25x P/E, with Coty as a significantly lower P/E of 12-20x range. Assuming you're not looking at public comps, the historic transactions available via Deal States looked like they were anywhere from 6-10x EBITDA on ~$6-15mm EBITDA. Depending on the size that you're looking at, probably in the usualredacted4x range (assuming you're looking at a size smaller). I think you need to get comfortable with how much you're looking to pay, where it fits into the capital structure you're seeking, how that pens out for yourself, investors and lenders, and then if it's something that the seller is open to. Tough to say where anything lands there without a hint of size, type of business (wholesaler, b2b, d2c, retail, etc...), distribution/footprint, expansion capacity in current state, existing POs, etc...