How Jessica DeLuca Turned Cult Beauty into a £275M Exit | Built to Sell Radio

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Jessica DeLuca founded Cult Beauty in 2007, creating the UK’s largest multi-brand beauty retailer. In this episode of Built to Sell Radio, Jessica reveals the path that led her to selling the business for £275 million to The Hut Group (THG).

DeLuca’s background in tech shaped the business, with her love for data and precision leading to a meticulously curated platform. Frustrated by the lack of unbiased information in the beauty industry, she built a database of expert advice, allowing customers to search products tailored to their needs—an approach that set Cult Beauty apart from the competition.

In this episode, you discover how to:

• Use niche expertise to build credibility and trust in a saturated market.

• Navigate early funding rounds and avoid common pitfalls.

• Structure a business for acquisition from the start.

• Keep competitive tension alive during the acquisition process to maximize valuation.

DeLuca’s journey offers invaluable insights into transforming frustration into a unique value proposition, building a niche brand, and securing a life-changing exit for her and her team.

Show Notes & Links

Official Press Release

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Definitions

 

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

About Our Guest

Jessica DeLuca

Jessica DeLuca is the visionary founder of Cult Beauty, one of the most influential online beauty retailers in the world. With a mission to cut through the noise of the beauty industry, Jessica launched Cult Beauty to curate the most effective and innovative beauty products available, backed by scientific integrity and expert recommendations. Under her leadership, Cult Beauty became renowned for introducing niche, game-changing products before they went mainstream, attracting a global customer base.