According to investment bank Capstone Partners, year-to-date deal volume fell 6.7% to 56 beauty transactions announced or completed, far better than the 24.2% drop across the broader consumer sector. Beauty deal multiples outperformed the wider consumer market as well, averaging 14.9x EBITDA versus 9.8x.

In a reversal from recent years, when private equity firms were often the most active force in beauty M&A, strategic buyers have taken the lead in 2025. Strategic deals rose 22.9% year-over-year to 43, while private-strategic transactions increased to 34 from 30 and public buyer activity climbed to nine from five.

Despite the overall slowdown, 2025 delivered its share of M&A fireworks. A handful of megadeals, from L’Oréal’s beauty-redefining $4.7 billion Kering Beauté agreement to E.l.f. Beauty’s $1 billion purchase of au courant Rhode, reshuffled the competitive landscape and set high bars for valuation.

L’Oréal’s acquisition of Medik8, for instance, was widely estimated to command one of the richest multiples in the sector this year, with reports placing the deal in the 20x to 25x EBITDA range. The valuation underscores the premium buyers are willing to pay for science-backed skincare brands with strong international upside.

As the year winds down, we want to understand the M&A implications of the dealmaking done (and not done). So, for the latest edition of our ongoing series posing questions relevant to indie beauty, we’re asked 14 investors, investment bankers and more the following: What are three key takeaways from 2025’s beauty deal track record? Based on those takeaways, what should indie beauty founders keep in mind if they’re positioning their brands for future investment or acquisition?