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Masters of Scale

Rapid Response: Surviving a close shave, with Harry's co-CEO Andy Katz-Mayfield

Masters of Scale

WaitWhat

Startups, Business, Mindset, Management, Bob Safian, Entrepreneurship, Diversity & Inclusion, Reid Hoffman, Jeff Berman

4.64.4K Ratings

🗓️ 6 May 2021

⏱️ 30 minutes

🧾️ Download transcript

Summary

Harry's took a one-two punch in 2020 – right on the chin. First, the federal government blocked a $1.37 billion acquisition of the shaving and consumer products company; then Covid-19 lockdowns hit. Rather than reeling from the abrupt change in plans, though, Harry's kept its balance. Co-founder and co-CEO Andy Katz-Mayfield explains how the team launched new brands amid the pandemic, tapped into unexpected pockets of demand, and, most recently, raised fresh capital at a valuation well above the blocked merger deal. Now, with a war chest at their disposal, Andy and co-founder and co-CEO Jeff Raider, are looking to acquire brands, having switched from seller to buyer. It is a classic entrepreneurial feat, finding strength and new opportunities out of disappointment and disruption.

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Transcript

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0:00.0

I had to get up the day that the FTC announced they were going to block the deal and put on a happy face and talk about all the silver linings to the company and at the time I brought in a calf belief that but now by 99% believe that

0:14.0

It wasn't just magic that we've been able to pull through and create more value.

0:19.0

Some of the macro things around COVID have been a benefit to our business and helped I think

0:24.0

been really clear on these like omnichannel capabilities that we have being truly distinct and differentiated in a real competitive advantage moving forward.

0:34.0

Of course there were still some benefits to the merger we wouldn't have done it but we're much better off as an independent company and I think fortunate to be where we are.

0:43.0

That's Andy Katz Mayfield, co-founder and co-CEO of Harry's, the shaving and consumer products company.

0:50.0

Harry's faced a double whammy in early 2020. First, the federal government blocked a billion dollar plus acquisition of the company disrupting all kinds of plans and then soon after COVID-19 lockdowns hit.

1:03.0

I'm Bob Safian, former editor of FESC company founder of the flux group and host of Masters of Scale Rapid Response.

1:11.0

I wanted to talk with Andy because given that environment you might expect all sorts of lost momentum.

1:17.0

Instead, Harry's has been rejuvenated, recently raising a bunch of fresh capital at a valuation well above the blocked merger deal.

1:26.0

Through the pandemic and the explains, Harry's got demand from some unexpected products and introduced several new brands and now with a war chest at their disposal, Andy and co-founder and co-CEO Jeff Raider are looking to acquire new brands, having switched from seller to buyer.

1:43.0

It's a classic entrepreneurial feat, finding strength and new opportunities amid disappointment and disruption.

2:00.0

We'll start the show in a moment, afterward from a premier brand partner, Capital One Business.

2:06.0

The stat we know from Arizona is there used to be something like 20 journalists per capita and now there are three.

2:15.0

That's Becky Palak. For over 20 years, she'd been a newspaper reporter in Arizona. And over that time, she watched her newsroom shrink around her, which meant local issues weren't being covered.

2:26.0

What's going on in your city council? What's going on with your taxes? What's going on with your local streets and parks and libraries?

2:34.0

The problem wasn't just in Arizona and it wasn't getting better.

2:38.0

I kept waiting for someone to have a plan for how to solve all the problems in our industry and then I would get behind that leader and like follow their plan.

2:47.0

And then at some point I realized I needed to do it like it needed to be my plan.

2:52.0

So Becky made a surprising pivot from journalist to entrepreneur. We'll hear about that journey later in the show.

2:59.0

It's all part of Capital One Businesses look at entrepreneurs who are solving big problems at all levels of scale.

3:11.0

I'm Bob Safian and I'm here with Andy Katz Mayfield, the co-CEO of Harry's. Andy is joining us from his home in California as I asked my questions for my home in New York. Andy, thanks for joining us.

...

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