"FocalPoint's industry expertise was critical in understanding and positioning the HATCHBEAUTY opportunity, and ultimately in partnering us with the right firm in Lion. Their team helped us navigate the transaction expertly which undoubtedly allowed us to achieve a very favorable outcome."
Tracy Holland, CEO, HATCHBEAUTY
Transaction
FocalPoint was engaged by the Company to run an expedited marketing process in order to infuse growth capital into the business and provide liquidity to buy one of the existing shareholders out.
Deal Challenges
Despite the expedited timeline of the contemplated transaction, FocalPoint was able to effectuate a successful outcome while simultaneously managing discussions with HATCHBEAUTY's lender to renegotiate its credit agreement, negotiate the buy out of the existing shareholder, and find a partner for the company to infuse capital for growth initiatives and opportunities.
Solution
FocalPoint was able to ensure a fair value for the Company's exiting shareholder, while maintaining a greater-than-expected amount of liquidity on the Company's balance sheet for its plans for future growth. FocalPoint's M&A and DCM groups collaborated throughout this transaction to produce an optimal outcome for HATCHBEAUTY, resulting in a less restrictive credit agreement with the Company's existing bank and an investment by Lion Capital, a London and Los Angeles-based private equity fund with $6 billion in assets under management. In collaboration with FocalPoint, the Company determined that the operational expertise provided by an equity holder would ultimately be more conducive to the Company's strategic growth initiatives. FocalPoint was able to facilitate a tight transaction process and complete the deal in less than 90 days from the date FocalPoint was first engaged by HATCHBEAUTY.