[K-INVESTORS] The M&A Problem Solver Behind Skinfood's Unexpected Comeback

Just a few years ago, "Skinfood" was regarded as a symbol of the stagnant first-generation road shop brands. Due to its corporate rehabilitation process in 2018, investor sentiment remained cold even when it was put up for sale in the mergers and acquisitions (M&A) market last year. However, the outcome was a dramatic reversal. More than 10 domestic and international buyers flocked to the deal, allowing Skinfood to make a spectacular comeback as a blue-chip in the market. Behind this dramatic turnaround was Sangbum Lee, Co-Leader (Managing Director) of the M&A Solution Group at EY-Parthenon.

Sangbum Lee, Partner at EY-Parthenon, is being interviewed by The Asia Business Daily at EY Hanyoung in Yeouido, Seoul. 2026.01.19 Photo by Hyunmin Kim

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Managing Director Lee, who led the Skinfood sale advisory, transformed the market's cold perception of the company into confidence. He identified that the cause of Skinfood's past corporate rehabilitation was not a loss of brand power, but rather a temporary liquidity issue caused by the shift to online channels and the THAAD crisis. He said, "For those who remember the old 'Don't eat it, give it to your skin' ad, Skinfood may seem like an outdated brand, but to today's Millennials & Gen Z, it is seen as a trendy indie brand known for products like the 'Carrot Pad.' I focused on erasing the lingering image of road shops for investors and proving that Skinfood is a brand with strong products and marketing capabilities."

In addition, he persuaded investors by highlighting the recent recovery in domestic sales and the potential for overseas success. His strategy proved successful, with more than 10 main bidders, including Gudai Global, participating in the auction, supporting Pine Tree PE's successful exit.

Such achievements were made possible by the unique structure of the M&A Solution Group, established in July 2024. Typically, accounting firms separate financial advisory and strategy consulting, which often leads to delayed information sharing or conflicts of interest between the two teams. However, the M&A Solution Group brought these functions together as one team. Lee explained, "It is extremely difficult to manage two organizations with different personalities, backgrounds, and cultures as one, but if successfully integrated, customer satisfaction is maximized." From the client's perspective, they can resolve everything from strategic value-up to financial due diligence in a one-stop process without having to communicate through multiple channels.

Lee's unique background also played a significant role. He is a rare case in the accounting industry, having a decade of experience as a private equity (PE) investment professional. His hands-on experience in making and being responsible for investment decisions has become a powerful asset in the advisory market. He said, "To deliver good results as an advisor, you need to maintain an objective view of market conditions and provide honest advice to clients such as PEs. I avoid simply telling clients what they want to hear just to secure a mandate. Based on my PE experience, I strive to clearly point out weaknesses and risks, while also presenting solutions to address them."

He added, "M&A is an industry where interests are sharply divided, but it is also an area where the art of negotiation shines. We aim to become an advisory firm that reduces conflict and builds trust so that both sellers and buyers can feel satisfied that they bought or sold at a reasonable price."

Sangbum Lee, Partner at EY-Parthenon, is being interviewed by The Asia Business Daily at EY Hanyoung in Yeouido, Seoul. 2026.01.19 Photo by Hyunmin Kim

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Having recently handled major deals involving Sungkyung Food, B&B Korea, and Five Guys, Lee diagnosed that the success or failure of future consumer goods M&As depends on "overseas scalability." While the F&B franchise sector, once reliant on the domestic market, has become less attractive due to stricter regulations, models that seek breakthroughs through overseas expansion continue to attract strong interest from investors.

Lee cited "gim" (seaweed) as a representative example. He explained, "Korea is the only country that has industrialized gim, previously just a side dish, as a 'snack' concept that people around the world can enjoy without hesitation. As Western markets have opened up naturally through exposure to K-culture, adding versatile business models such as diversified seasonings has created a powerful growth engine."

However, the outlook is not entirely rosy. Lee also pointed out the structural limitations of the domestic consumer goods and beauty sectors. He noted that while more brands are experiencing rapid growth through marketing on social media platforms like TikTok, soaring marketing costs could become a boomerang that undermines profitability.

He said, "Influencer marketing, which used to be possible with 50 million won, now costs as much as 500 million won, showing just how overheated the market has become. Relying solely on viral marketing through social media clearly has its limits. For brands with a short history to achieve longevity, they must go beyond efficient marketing spending and secure a unique brand identity and product scarcity."

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Lee also offered practical alternatives regarding the succession issue, which has become a major concern for founders of small and medium-sized enterprises. He emphasized that "joint management with PE" could be a solution for first-generation founders struggling with tax issues or children unwilling to take over the family business. He noted that the M&A market, which used to focus on "buying cheap and selling high," has recently shifted toward active value enhancement through the introduction of professional management systems, with PE evolving into a "value-up partner" for founders.

He said, "For founders who feel limited by the domestic market, partnering with PE can be a new opportunity. It is not about selling 100% of their shares and leaving the company they built over a lifetime. Instead, the fund acquires 70% and takes management control, while the founder retains a 30% stake." He emphasized, "By leveraging the resources and systems of PE to rapidly increase corporate value, and then jointly selling to a third party at a higher price in the future, founders can watch their company grow to the end and also realize tangible benefits-a true win-win strategy."

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