TOGETHER WITH

Table of contents

• EDITOR’S RAMBLE 🗣

• FEATURED REPORT 📰

• TOGETHER WITH BARBRI SQE* 🤝

• IN OTHER NEWS 🗞

• AROUND THE WEB 🌐

• STUFF THAT MIGHT HELP YOU 👌

EDITOR’S RAMBLE 🗣

A quick heads-up for anyone interested in LegalTech 👀

Europe’s biggest legal event (with 4,000+ global legal tech experts) is looking for some student volunteers.

If you want:

• insider access to the industry

• to learn about a career in events or media

• amazing experience to add to your CV

There are only 11 spots left — applications have been flying in (plus it’s at the Intercontinental O2 👑).

If you’re keen, apply here.

Hope some of you get it — it’ll be a great couple of days.

- Idin

P.S. I’ll be there too — so if you’re coming, do say hi!

FEATURED REPORT 📰

💄 What Hailey Bieber’s $1 billion exit means for beauty

What’s going on here?

e.l.f. Beauty, a US-based cosmetics company, has bought rhode for $1 billion.

rhode is a beauty brand started by American model Hailey Bieber. It’s known for incorporating skincare ingredients into its makeup and using social media to make the brand feel aspirational.

Why is this deal good for e.l.f.?

📈 Strong sales growth: e.l.f. has been growing fast for years. It’s known for selling good-quality beauty products at very low prices.

In fact, e.l.f. has grown its sales every quarter for over six years. Just two weeks ago, it announced $1.3 billion in sales for the 2024–25 financial year — which is a 28% jump from the year before.

🛒 Recent acquisitions: Because of the strong financials, e.l.f. now has a lot of money to spend. Lately, the company has used those funds to buy other beauty brands.

It bought Well People in 2020 (for $27 million), and Naturium in 2023 (for $355 million).

💅 Moving into affordable luxury: These deals helped e.l.f. move into the “affordable luxury” market — higher-end products that are still cheaper than designer brands.

Buying rhode fits that plan. While most e.l.f. items cost about $6.50, rhode’s products cost between $18 and $38. So, this deal helps e.l.f. reach customers who are willing to spend more.

Why is this deal good for rhode?

e.l.f.’s CEO said Hailey Bieber “could have easily got more money from private equity or someone else.” But she chose e.l.f. because the two brands share the same values — and that matters for long-term success.

🛍️ From online to in-store: rhode is only sold online at the moment. e.l.f. can help change that. With e.l.f.’s support, rhode will soon be in physical stores too — starting with Sephora shops in the US and Canada this autumn, and in the UK by the end of the year.

📱 Same marketing mindset: Both brands are great at using social media. rhode has a strong following, thanks to Hailey Bieber’s identity as founder. e.l.f. also focuses on digital marketing — especially platforms that reach younger customers. That shared approach means e.l.f. understands and supports rhode’s style of marketing.

🎨 Respect for creative control: e.l.f. values founders who do things differently. The company sees itself as a rule-breaker in beauty — making affordable versions of high-end products. e.l.f.’s CEO sees Hailey Bieber as someone with the same spirit. That’s why she’ll stay on as co-founder, chief brand officer, and head of innovation. Her co-founders and rhode’s CEO will also stay in place after the deal.

What does this mean for the beauty industry?

Many smaller beauty brands, like Rare Beauty (owned by Selena Gomez) and Makeup by Mario (created by makeup artist Mario Dedivanovic), have struggled to find buyers lately.

Big beauty companies like Estée Lauder and Shiseido haven’t been doing as well lately. Sales in China — once a major market — dropped after Covid. So, they’re being more careful with money and buying fewer brands.

Also, private equity firms worry about buying these brands. They think they rely too much on social media buzz — which might fade as people cut back on non-essential spending.

But rhode’s $1 billion sale could change things. If it performs well under e.l.f., it might convince investors that social-media-driven brands still have strong growth potential, even in a tougher economy.

Which law firms are involved?

Skadden advised rhode (the company), while Cravath acted for Hailey Bieber personally.

e.l.f. was represented by Latham & Watkins.

Who gets the $1 billion?

Hailey Bieber won’t personally walk away with $1 billion.

The money is split in different ways and shared with others. This breakdown was explained in a super helpful LinkedIn post by Jade O, a future trainee solicitor at Jones Day.

• $600 million in cash: This goes to rhode’s shareholders. Hailey is a founder, but she’s not the only owner (or shareholder). Other co-founders, investors, and possibly employees with shares will all get a cut of this cash.

• $200 million in e.l.f. shares: Instead of paying the full amount in cash, e.l.f. is giving $200 million worth of its own stock. This helps e.l.f. keep more of its cash, and it gives rhode’s leaders a reason to stay and perform — if e.l.f. does well, their shares go up in value.

• $200 million in earn-outs: This part of the deal isn’t guaranteed. It’s a bonus that depends on how well rhode performs over the next three years. If the brand hits certain sales or profit targets, its shareholders will get paid this extra money gradually. (This type of bonus is called an earn-out — it’s a way for the buyer to reward future success without paying everything upfront.)

Then, there are some costs the shareholders have to pay from the money they’re getting.

• Taxes: Hailey and the other shareholders will owe capital gains (and possibly US state taxes) on what they receive, which cuts into their final amount.

• Fees: Some of the money will also go to pay rhode’s advisers — including Skadden (the company’s law firm) and J.P. Morgan (its financial adviser) — for their help with the deal.

How can you use this in your applications?

If you’re talking about a big M&A deal in a case study, interview, or written application, it’s important to show you understand how money actually moves at the end of a transaction.

🤨 Who gets the money? The headline figure — like e.l.f.’s $1 billion acquisition of rhode — is not what one person pockets. And it’s not always paid in one go.

First, the money usually goes to multiple shareholders. In rhode’s case, Hailey Bieber is one of several owners. Investors, co-founders, and even employees with shares all get a piece of the payout.

Second, the payment itself might be split in different forms. For rhode, the $1 billion included:

• $600 million in cash,

• $200 million in e.l.f. shares, and

• $200 million in future earn-outs, paid only if rhode hits performance targets.

And that’s before costs. Shareholders also have to pay tax (like capital gains) and professional fees — including legal and financial advisers.

🔄 Where does the money transfer go? These moving parts make things complex. That’s why, in deals like this, law firms often don’t handle the payments themselves. Instead, they use payment agents — these are specialist companies that manage the payout process. This helps reduce admin and legal risk, especially as anti-money laundering laws (like the UK’s Financial Services and Markets Act 2020) now require firms to run KYC (“Know Your Customer”) checks even on the recipients of funds to prevent money laundering.

If you mention these things in a case study or interview, you’ll show that your understanding of “M&A” goes way beyond the legal stuff.

This shows you understand the real-life mechanics behind a deal — and that’ll mean you’re thinking like a commercial lawyer.

TOGETHER WITH BARBRI SQE* 🤝

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* This is sponsored content

IN OTHER NEWS 🗞

• 📈 Kennedys has hit a big milestone, passing £400 million in global revenue for the first time. That’s a 13% jump from last year. The firm’s been pushing hard to grow overseas — especially in North America, where revenue rose 22% to £110 million. It also brought in £13 million from Latin America. But growth at home hasn’t been as fast, with the UK and Europe seeing smaller increases. Still, the long-term goal is clear: Kennedys wants to reach $1 billion in revenue by 2030.

• 👔 Debevoise & Plimpton is rolling out a new partner structure. From now on, some partners will get a share of the firm’s profits (equity partners), while others will earn a salary (non-equity partners). Skadden and Ropes & Gray are thinking about doing the same. This setup lets firms reward top lawyers with the partner title without giving them ownership. It also gives more pay flexibility and helps keep strong senior associates who aren’t quite ready for full equity.

• ⚖️ Getty Images is taking Stability AI to court in the UK. The trial kicked off this week and will run for three weeks. Getty says Stability used millions of its copyrighted photos to train an AI image tool — without permission. The case raises big questions about how copyright law applies to AI, and the outcome could shape how future AI models are built and trained. Simmons & Simmons have a good summary of it.

AROUND THE WEB 🌐

• 📏 Useless: Here’s a site dedicated to different celebrities’ heights (I’m the same height as Elvis and 50 Cent)

• 🎵 Awesome: Make a playlist inspired by artwork in the National Gallery

• 🍊 Curious: The fruit “orange” was named before the colour — not the other way around

STUFF THAT MIGHT HELP YOU 👌

• 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.