P
ProHub
English 简体中文 繁體中文
Medium Market Size and Positioning M&A

Fuqua Equity Partners Considers Skincare Solutions

#PE #Private Equity #Beauty & Skincare #Contract Manufacturing
ProHub Comment

This is a structured private equity M&A case that requires candidates to conduct market sizing, analyze competitive positioning, and develop Phase 2 recommendations. The case emphasizes the importance of a PE-specific framework, quantitative rigor in market sizing, and strategic thinking about post-acquisition value creation. The evaluation criteria clearly reward candidates who demonstrate structured thinking, show good math ability, provide detailed competitive analysis, and acknowledge this is Phase 1 of a larger process.

Estimated Time 15 minutes
Difficulty Medium
Source Duke
50 / 100
Your client is Fuqua Equity Partners, a midsized private equity firm out of New York. They are considering the acquisition of Skincare Solutions, a contract manufacturer of beauty and skincare products. Skincare Solutions is a smaller player who focuses on environmental friendly solutions. They also are known for turnkey solutions. For Phase 1, your client is interested in understanding about the skincare contract manufacturing market as well as Skincare Solutions’ competitive positioning.

Clarifying Information

  1. Client Information: Skincare Solutions was founded in 1985. A contract manufacturer is a third party hired to manufacture the product for the client. They do not sell or distribute this product. Turnkey solutions is end to end solutions (i.e. R&D and Formulation all the way to bottling and shipping. However this does not include B2C distribution). The client is located in Jacksonville, Florida. They own two plants in Jacksonville.
  2. Customer: Skincare solutions client mix includes independent brands (i.e. independently owned and operated so not major brand) and private label brands
  3. Market: Skincare market is divided into 3 segments: Mass, Premium, and Prestige.
  4. Timeline: Fuqua Equity Partners is expecting a 5 year hold period (i.e., they are looking to hold the investment for 5 years before selling)
  5. Client has not established an ROI threshold yet