Diligence and Carve-out Support for a Prestige Beauty Brand
ReVive Skincare LLC
May 22, 2019
ReVive Skincare LLC (ReVive), a $17 million plus luxury skincare brand that sells its products online and via department stores, specialty retailers and distributors in the United States, Canada, the United Kingdom and Asia, was acquired from a global beauty conglomerate by Tengram Capital Partners (Tengram), a U.S.-based private equity firm focusing on the retail and consumer sector. The acquisition involved the purchase of intellectual property, inventory and the distribution channel. With a majority of corporate services provided by resources shared with the seller, ReVive required transition services support until it could hire its own resources and stand up its own systems and services.
FTI Consulting's Role: Transition Service and Separation Planning Development and Management
FTI Consulting’s Retail and Consumer Products industry professionals, along with the FTI Transaction Services team, initially provided due diligence services to enable Tengram to create a more representative profit and loss model for each major customer of the standalone ReVive brand, in order to better determine whether it would go forward with the acquisition.
Following the decision to acquire ReVive, Tengram asked FTI Consulting to assist with the carve-out process. This involved facilitating the creation of the transition services agreement (TSA) across finance, supply chain, HR, legal, new product development, e-commerce sales, and marketing, by conducting interviews and workshops with the seller’s and ReVive’s corporate officers.
Once the TSA was in place, the team also managed the creation of the Day One checklist and oversaw the Day One separation planning activities between sign and close, following which it provided post-close management, governance and issue resolution support for the agreed-upon transition services.