Determining the right multiple for Hair Care product company

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June 17, 2025

by a searcher from Brigham Young University in Utah, USA

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 searcher
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 usual###-###-#### 4x 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...
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Reply by a searcher
from Arizona State University in Scottsdale, AZ, USA
The right multiple is a function of many variables. everything for cashflow, to ownership, to product mix, to size of organization, recurring revenue, potential upside, current in place ops management team and so much more. In my opinion, The beauty product industry is very challenging to get new products off the ground unless you are very established brand and have a distribution network that stylist are willing to try on.
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