Oribe sold in early 2018 for $441M, but in 2008 they were just a few sketches of shampoo bottles on a piece of paper. Tev Finger shares the surprising tactics they used to drive revenue.
Tevya Finger, President and CEO of Luxury Brand Partners, wanted to start a luxury hair product company and quickly raised $6M in capital from investors to begin Oribe Hair Care.
Before they could really get their products off the ground, the 2008 economic crisis hit and $2M of their start-up capital was frozen by the bank. On top of that, Finger was also worried that no one would want to spend money on luxury beauty products during this time.
So, he and his partners got creative. They organized hair stylist conferences in Las Vegas, took out ads in trade publications, and found ways to be the bright spot in the beauty market during the downturn.
When the company grew to $20M, Finger knew he had to quickly get to $80M to be a contender for acquisition. When they hit $90M in revenue, they were approached by the Japanese company KAO Corporation who bought Oribe for $441M in 2018.
In this episode, you’ll learn:
Finger’s revenue stream could have been compromised, as hair salons are notoriously slow to pay invoices, but Oribe found a way to secure their cash flow. Module 10 of The Value Builder System™ helps you maximize the cash flow coming from the day-to-day operations of your business. Get started for free right now by completing Module 1.
Tevya Finger is a self-taught, self-made career veteran of the beauty industry. Finger got his start at age 16 working in the photo darkroom at Bumble and bumble. Through hard work, dedication and a natural aptitude for business and strategy, Finger rose through the ranks to become VP of Sales and Operations and eventually EVP, a partner and board member. After Bumble and bumble was sold to Estée Lauder in 2006—an acquisition in which Finger played an integral role—he, along with his former Bumble and bumble partner Daniel Kaner, raised $6 million to launch Oribe Hair Care as a start-up in 2009.
John Warrillow: Hey this episode of Built to Sell Radio is brought to you buy the Value Builder System. I had the opportunity to interview Stephanie Breedlove the other day. She sold her nine million dollar payroll company for a cool 54 million dollars. How did she do it? She focused on the eight things that drive company value. Things like, what we call the Switzerland structure, monopoly control, recurring revenue. All things you’re going to evaluate in your own business using the