Deals
Hot IPO Market Is Tough Competition for Consumer-Hungry Buyers
- Consumer, retail companies have raised $4 billion in 2021 IPOs
- Attractive public markets are driving up valuations of targets
Photographer: Luke Sharrett/Bloomberg
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Acquisitive companies competing to buy hot consumer and retail targets are facing another hurdle: a booming public market that’s attracting high-growth companies to list instead of sell.
When Jessica Alba’s skincare maker The Honest Co. went public this year, it did so after first exploring a sale, according to people familiar with the matter. When the company’s investors realized the IPO value would be higher than what it could get from buyers, Honest scrapped the sale and went for the listing, the people said. A representative for Honest declined to comment.