Case Study: Paula's Choice

Bertram Capital employed The Bertram Capital High 5sm to build a unique content-driven ecommerce platform offering innovative skin care and cosmetics.

Company

Paula’s Choice is a content-driven ecommerce platform offering proprietary products, extensive skin care research, and exclusive reviews of more than 45,000 products from other brands.

Acquired

November 2012

Recapitalized

May 2016 Majority Recapitalization to TA Associates

Transaction
Overview

Bertram Capital acquired Seattle, WA based skincare and cosmetics company, Paula’s Choice in November of 2012 and quickly deployed its value creation strategy, the Bertram High 5sm to grow the company’s online sales while expanding the business to a thriving international and multi-channel operation. The company’s revenue grew 3 times during Bertram’s initial three and a half year investment period before completing a majority recapitalization with private equity firm, TA Associates in May of 2016.

Sales Channel

Sales & Marketing:

Launched products in Nordstrom and on QVC. Produced first print marketing campaigns. Dramatically accelerated website traffic.

Management

Added:

CEO, CIO, Creative Director, VP Supply Chain, VP Sales, Controller

Add–Ons

Acquired Paula’s Choice European Distributor

Added SE Asia Distributors

Opened direct sales to Australia

image of continents, Australia, Europe, and SE Asia

Technology

Results:

Average monthly unique visitors up 4.5x from online marketing initiatives. Implemented automated online re-ordering.

image of visitors up 4.5x

Supply Chain

Results:

Launched third party logistics initiatives decreasing delivery times in half and improving working capital.

Results

Grew revenue 3x during Bertram’s three and a half years of control ownership.