D2C Prestige Skincare
Prestige D2C skincare brand generating $10.84M LTM revenue, $1.76M reported EBITDA and $1.66M normalized EBITDA (15.3% margin), 60.0% gross margin and an estimated ~$1.09M free cash flow (~65% conversion).
Buy-side Quality of Earnings for a prospective acquirer, covering revenue quality and recognition, channel analysis, customer concentration, EBITDA normalization, working capital and cash conversion.
Five EBITDA adjustments produced a net $104K downward normalization. Net working capital analysis supported a $735K–$810K peg versus management's proposed $940K — a potential ~$330K closing adjustment. The largest wholesale counterparty (18.3% of revenue) had a contract nearing expiry.
Moderate-to-high earnings quality. Recommendation: proceed, subject to conditions.
Concise summary of the quality-of-earnings analysis, key adjustments and transaction considerations.
View Executive Summary →Detailed quality-of-earnings work covering EBITDA normalization, working-capital analysis and customer-concentration findings.
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