Purchasing trends in the areas of beauty, health, wellness and baby products have shown that consumers have raised their expectations and are demanding products that align with their values such as transparency, sustainability, and good-for-you, clean or natural ingredients.
Consumers have proven that they are willing to stray from the legacy brands that have ruled the shelves for years, making room for explosive growth for worthy industry players. Companies in beauty, health and wellness aim to be agile and accessible, whether through traditional means such as retailers and trade shows or by embracing online advertising and direct-to-consumer channels.
Meeting consumer preferences has resulted in the need for raising capital, obtaining debt, analyzing costs, and significant spending on research and development. Choosing the right accounting, tax and business advisor to help you navigate challenging issues and capitalize on opportunities that are available to you are vital to your company’s success.
Anchin has a proven track record in the consumer products space, helping our clients not only with the accounting and tax side of their business, but also with advising on finance options including introductions to lenders and potential investors.
We have the experience to add meaningful value to your business, whether you are starting out or well-established, and can guide you through each stage of growth, from venture capital to private equity to an ultimate exit or succession plan.
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We advise on:
- Entity Structure and Agreements
- LLC/Corporate Conversions
- Employee Compensation Plans and Retention
- Equity/Debt Raises
- Financial Projections
- Managing Supply Chain
- Sales tax consulting and other multi-state issues
- SKU Rationalization
- Succession Planning
- Financial reporting structure
- Tax planning and advice
- Development of key performance indicators
- Exploration of bank financing
- Research and development credits assistance
- Cost cutting strategies
- Assistance with multi-state tax matters
- GAAP financial statements
- Tax returns
- Due diligence services
- Exit strategies
Anchin advised a health and beauty company that was an emerging brand. Prior to engaging Anchin, the company did not have GAAP financial statements prepared. We assisted the company with the following:
- Conforming their internal financial statements to be compliant with GAAP
- Making introductions to lenders for line of credit
- Issuing GAAP reviewed financial statements and tax returns
- Consulting on sales tax issues
- Determining proper state income tax filings
- Performing a research and development tax study and obtaining tax credits to be passed through to owners
- Navigating them through the due diligence process and tax planning in connection with the sale of the company to a strategic buyer
- Key Updates Regarding the Expansion of COVID-19 Economic Injury Disaster Loans (EIDL)April 22, 2021
The Small Business Association (SBA) has issued various updates related to the amount of disaster loans available to address the ongoing strife faced by many businesses in the wake of the COVID-19 pandemic, including the potential to request an increase to an existing loan.
- What Companies and Their Financial Partners Need to Know Related to the Paycheck Protection Program (PPP)March 17, 2021
Now that many companies are in the midst of preparing their financial reports for 2020, it is time to understand how banks will evaluate the PPP loans that may be included as liabilities on balance sheets at December 31, 2020. How will banks view PPP loans in light of an entity’s equity value and loan covenants?
- What You Need to Know About the American Rescue Plan Act of 2021March 12, 2021
On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law by President Biden. The contents of the $1.9 trillion bill are mostly in line with the plan set forth by President Biden before he was inaugurated on January 20. The package is intended to provide additional economic relief related to the ongoing COVID-19 pandemic, and the majority of funds are allocated towards enhanced unemployment relief, expanded funding for COVID-19 relief programs, aid to state and local governments, and assistance to schools. From a taxpayer perspective, the bill included tax provisions that provide relief both to businesses and individuals through enhancements, and expansions of credits and programs that were put in place to keep families and small businesses afloat through the ongoing crisis. This includes an extension of payroll tax credits first instituted at the start of the pandemic for businesses.
- Non-qualified Stock Options vs. Incentive Stock Options: Which is right for your company?November 12, 2020
Being able to attract and retain key talent can substantially aid a company’s ability to succeed and grow. There are many offerings that can appeal to key employees, and one that tends to be popular is a stock option plan. If you are looking to provide your employees with an incentive stock option (“ISO”) plan or a non-qualified stock option (“NSO”) plan, you will want to make a careful and informed choice.
- Seeing your Emerging Brand through UncertaintyMarch 18, 2020
At times like this, where the only thing certain today is more uncertainty tomorrow, your business must brace itself for the worst. Even as many of our clients and friends in the CPG industry are telling us they are having their best week, month or quarter ever, they must take into consideration that this short-term burst will slow and possibly completely pause before growth starts again.
- The Impact of the New Revenue Recognition Standard for You and Your Consumer Products BusinessNovember 12, 2019
Resources from our 11/12 session covering the five-step model and industry specific considerations for Consumer Products companies.
- Tips for Emerging Consumer Brands Focused on High GrowthJanuary 11, 2019
Even the biggest industry players were once emerging brands. It is a success story that we have seen time and time again, yet no two cases are quite the same. In our years of work with emerging brands, certain themes have presented themselves, and while your goals are unique to you, you may be able to benefit from some of these lessons learned.
- Financing Options for Emerging BrandsAugust 10, 2018
Emerging brands are constantly looking for ways to make their mark on the consumer product industry, but it can be challenging for these businesses to rely strictly on funding from founders, friends and family, and cash flow from operations to increase brand awareness. For the best opportunities for success, emerging brands have to make tough financing decisions to promote company growth. Both debt and equity financing are great options for consumer product brands to raise additional capital. Whether a brand just landed its first national account or is about to launch in major retailers, founders need to assess the pros and cons of each option to determine what is most suitable for their company.
- Decision-Making Strategies for Consumer Brands April 14, 2017
Last month, over 80,000 innovators attended Expo West, a gathering of industry minds focused on the development and production of natural, organic, and healthy products. Anchin joined a panel of experts from Whipstitch Capital, The Giannuzzi Group, Force Brands, REBBL, KeVita, and SPINS to discuss successful strategies for decision-making about Consumer Brands.