Recapitalization for Boxycharm

Boxy Charm

  • Background:  Headquartered in Miami, FL, BOXYCHARM is the premier monthly beauty box subscription service, delivering 4-5 full-size and luxury travel-size products of well-known, popular, chic, and up-and-coming cosmetic brands.  BOXYCHARM’s unique value proposition is their ability to provide a combination of the newest and highest quality brands and products in full-size offerings, while most competitors offer sample-size products.
  • Cassel Salpeter:
      • Served as financial advisor to the Company
      • Ran a competitive capital raise process, identifying and contacting over 100 strategic and financial parties
      • Structured a minority recap and growth capital raise with a built-in option for a majority recap
  • Challenges:
    • Earn-out structure to increase valuation of capital infusion contingent on success-based performance benchmarks
    • Minority shareholder buyout
  • Outcome:  In February 2016, KarpReilly Investments, LLC invested in BOXYCHARM.  Subsequently, in October 2016, KarpReilly exercised their majority recap option.  KarpReilly is a private investment firm based in Greenwich, CT.