Well, known hair care brand The Mane Choice was acquired by Canadian Beauty Group MAV Beauty Brands back in 2019. There has been a ton of chatter online about this acquisition recently for a number of reasons, some of which I will outline further.
Courtney Adeleye founded the brand in 2013 combining her love for general health with her passion for hair and beauty. I remember watching her on youtube videos about natural hair from the comfort of her bathroom and have witnessed the evolution of the brand to what it is today.
Transition and the technicalities of acquisition in business aren’t always easy to understand but both concepts arent foreign to entrepreneurs, specifically black business leaders across a variety of markets. The weight of the explanation to those who “ride with us” specifically within our space can also be extremely hard.
About MAV Beauty
MAV Beauty Brands is a global personal care company dedicated to providing consumers with premium quality, authentic and differentiated products.
Their platform consists of four complementary and growing personal care brands: Marc Anthony True Professional, Renpure, Cake Beauty and The Mane Choice.
Their products include a wide variety of hair care, body care and beauty products such as shampoo, conditioner, hair styling products, treatments, body wash, and body and hand lotion across multiple collections that each serve a different and personalized consumer need.
Their products are sold in 35 countries around the world and in more than 100 major retailers. In North America, MAV Beauty Brands’ products are primarily sold in the FDM (food, drug, mass), club, dollar, off-price, specialty and online channels. In addition, MAV Beauty Brands has expanded in international markets by strategically partnering with leading distributors who have strong, established relationships with major retailers across the world.
Now I know what yall are thinking, but let me be the first to say that personally, I am excited for Courtney! Her work and business will put the brand in the position to increase market power, take advantage of more resources, and reduce barriers to entry. At the end of the day its business!
However, the sentiment of passionate followers is not lost on me! Most of us are very invested in the idea of our black business leaders remaining 100% in charge of our narrative, using the privilege of being apart of it to create something special for us to enjoy and support. I like seeing our products on our shelves with the faces of the women that look like me represented boldly.
Acquisition within our space will always spark the discussion about the fragility of our black impact and can cause a range of emotions. We had similar sentiments when L’Oreal USA bought Lisa Price’s Carol’s Daughter in 2014.
It will be interesting to hear Courtney’s statement about the acquisition, I believe she will not disappoint us at all and will give as much light as she can with regard to what to expect of the Mane Choice going forward.
Courtney posted this on Instagram:
View this post on Instagram
These deals are very intricate and most of us are not on the frontline of the decisions! Richelieu Dennis said the following when Shea Moisture was sold –
“I’ve always wanted Sundial Brands to be an inspiration to other minority-owned companies of how a business against all odds can achieve excellence, have a significant social impact in our communities and be successful on a world stage,” says Dennis, “I am excited Sundial and Unilever have created this partnership, rooted in a purpose-driven ethos, that represents an incredible opportunity to take our Community Commerce economic empowerment and impact model to another level.”
From a business perspective, mergers and acquisitions are risky but the benefits when done right can be gold! A simple google search will show you exactly what I mean!
Read the below 5 reasons companies engage in M&A:
Many companies use M&A to grow in size and leapfrog their rivals. in contrast, it can take years or decades to double the size of a company through organic growth.
This powerful motivation is the primary reason why M&A activity occurs in distinct cycles. The urge to snap up a company with an attractive portfolio of assets before a rival does so generally results in a feeding frenzy in hot markets. Some examples of frenetic M&A activity in specific sectors include dot-coms and telecoms in the late 1990s, commodity and energy producers in 2006-07, and biotechnology companies in 2012-14.2 3 4
Companies also merge to take advantage of synergies and economies of scale. Synergies occur when two companies with similar businesses combine, as they can then consolidate (or eliminate) duplicate resources like branch and regional offices, manufacturing facilities, research projects, etc.
Every million dollars or fraction thereof thus saved goes straight to the bottom line, boosting earnings per share and making the M&A transaction an “accretive” one.
Companies also engage in M&A to dominate their sector. However, a combination of two behemoths would result in a potential monopoly, and such a transaction would have to run the gauntlet of intense scrutiny from anti-competition watchdogs and regulatory authorities.5
Companies also use M&A for tax reasons, although this may be an implicit rather than an explicit motive.
Make sense right? Comment below and let me know what you think!