What started as a celebrity-founded skincare brand has transformed into a global success with consistent product releases and expansions into international markets due to a strategic brand acquisition. As the one-year anniversary of e.l.f. Beauty’s (NYSE: ELF) acquisition of rhode approaches in May 2026, this transaction illustrates to founders and investors how the right strategic partner can unlock distribution, operational scalability and global acceleration that may otherwise take years to build organically.

For founders and investors, it is important to think beyond growth potential and consider whether a strategic partner could also contribute to materially accelerating timelines, expanding capabilities and creating value that would be difficult to achieve independently.

GLOBAL AND RETAIL EXPANSION EMPOWERED BY DEEP CAPITAL RESOURCES AND INFRASTRUCTURE 

Prior to e.l.f.’s acquisition of rhode, the beauty brand operated through a direct-to-consumer (DTC) model, which achieved virality largely due to Hailey Bieber being the founder of the company, as well as influencer and celebrity marketing. rhode was operating, at the time, with the infrastructure and resource constraints of a typical early-stage brand despite strong consumer demand and viral momentum. This meant that there were opportunities for untapped markets, such as shipping outside the U.S. and availability of the products in stores. 

Within four months of e.l.f. acquiring the beauty brand, rhode announced an official launch in Sephora. This marked a significant strategic objective that was able to expand rhode beyond the limitations of an online-only channel. The announcement also included expansions of shipments and Sephora stores in Canada, which further fueled the significant growth in the company and contributed to an increase in e.l.f.’s net sales in late 2025. Expansion into retail channels consequently increased the brand’s visibility and diversified its revenue streams to reduce reliance on DTC customers.

A recent milestone that also advanced rhode’s expansion was a retail partnership with Mecca in Australia and New Zealand in February 2026. Mecca is a leading beauty retailer in the region, and this was a major step into the globalization strategy of the brand.

These developments all occurred within a relatively short post-acquisition period. This illustrates how strategic M&A can accelerate growth through established relationships, infrastructure and capital resources that may not have been readily accessible on a standalone basis.

With this in mind, founders can assess whether their current platform supports global and retail expansion, or if a strategic partner with established distribution and infrastructure could more efficiently grow these channels.

OPERATIONAL AND PRODUCT DEVELOPMENTS BACKED BY STREAMLINED PROCESSES AND ESTABLISHED QUALITY CONTROLS

Because e.l.f. is established as a platform known for rapid innovation cycles and its existing supply chain infrastructure, e.l.f.’s involvement in rhode has contributed to the cadence of product launches and enhanced operational rigor.

At the company’s origination, rhode started with three initial core products and expanded its offerings at a slower pace to ensure proper time for testing and quality control. Since the acquisition, there have been a number of new products released and teased, such as makeup brushes, bronzers, eye patches, pimple patches, face masks and more. This is due to the existing infrastructure of e.l.f. that allows for streamlined SKU production at a faster pace, while maintaining the integrity and quality standards of the original products that customers know and love. Additionally, e.l.f. was able to retain Hailey Bieber as rhode’s Creative Director, which maintained consistency of the beloved brand while fueling the growth and meeting customer wants.

Prior to the acquisition, there was a notable instance of quality control issues, specifically with the lip products turning grainy over time. Following the acquisition, the issue was resolved through reformulation, which reinforced the importance of scalable quality control systems when brands transition from startup infrastructure to enterprise-level operations. In rhode’s case, this is a key advantage of a strategic partnership supported by established quality control systems designed to enhance customer satisfaction while protecting the brand’s financial performance.

This demonstrates the need for brands to evaluate whether their operational infrastructure, supply chain and quality control systems are built to scale, or if a transaction could strengthen these capabilities while preserving brand integrity.

M&A CAN ACCELERATE BRAND POTENTIAL

From a transaction perspective, rhode represents a classic example of a founder-led, brand-forward business reaching an inflection point where infrastructure, rather than demand, becomes the limiting factor. In these situations, a strategic acquirer with established supply chain, retail relationships and capital access can compress a multi-year growth plan into a significantly shorter timeframe. Key milestones, such as expansion into Sephora and the partnership with Mecca, demonstrate the market reach of a more established and tenured organization. 

Business owners can proactively assess whether they are approaching an inflection point where strategic capital or a sale could accelerate growth, and partner with an advisor early to evaluate timing, readiness and buyer alignment.

ASSESS THE RIGHT APPROACH FOR YOUR COMPANY

Beauty and skincare products continue to gain relevance across global markets, and this strategic acquisition serves as a useful case study for business owners evaluating what a transaction could mean for their own growth trajectory. Though, an acquisition might not be the right approach for every company – as other factors, such as brand dilution, valuation concerns and integration risk – are all possible reasons to stay independent or instead pursue capital raising. Determining the right move for your business takes in all of these considerations and evaluates the growth goals of the company and its leadership.

As your consumer brand business looks to expand, scale or make its next move, GHJ’s Transaction Advisory Services Practice can help you weigh key considerations before pursuing a transaction, assess whether your brand is at an inflection point and highlight what buyers will value in your business. Working with an experienced advisor can provide the clarity and speed you need in decision-making, helping you quantify trade-offs, anticipate risks and position your business to maximize value in any transaction scenario.