“I’m in favor of progress; it’s change I don’t like.” – Mark Twain

Businesses, like people, are creatures of habit. They build, they acquire, they grow – often driven by the relentless pursuit of expansion, the lure of new opportunities, and the belief that more is always better. Then, inevitably, the cycle swings back. The same companies that spent years accumulating brands, spreading their reach into new categories, and diversifying their portfolios find themselves needing to strip back, refocus, and let go.

This isn’t failure; it’s rhythm. The rubber band stretches, and then it releases.

Today, we’re seeing a number of major players entering the release phase.

Estée Lauder, Reckitt, and Unilever are all reviewing their brand portfolios, looking to offload businesses that no longer fit their strategic priorities. For years, expansion was the name of the game. Beauty giants acquired indie darlings in the hopes of finding their next Estée Lauder or MAC. CPG companies scooped up household staples to secure market share. But as growth slows, priorities shift.

So why does this happen?

Why do businesses stretch so far, only to need to snap back? Often, it comes down to the seductive optimism of acquisition. The idea that a new brand will unlock a new consumer base, or that an underutilised asset can be turned around with the right resources, is incredibly powerful. And sometimes, it works. Brands like The Ordinary, now owned by Estée Lauder, or Dollar Shave Club, bought by Unilever, have successfully scaled under corporate ownership. But many acquisitions fail to integrate smoothly. Culture clashes. Founders leave. The magic that made a brand special gets diluted in the process of trying to fit within a corporate machine. And so, companies are left holding brands that no longer feel like natural extensions of who they are.

But here’s the flip side: every divestiture creates an opportunity.

There is a new generation of Houses of Brands emerging, ready to absorb what the giants let go. Helen of Troy, a company many had never heard of a decade ago, has built an empire by acquiring and reviving overlooked brands. Private equity firms are circling, eager to carve out and reposition businesses that didn’t quite fit within a broader portfolio but could thrive with the right focus.

So, what should companies do? When should they stretch, and when should they release?

At Butterfly, we believe that acquisition should never be a knee-jerk reaction to growth pressure. Businesses need to ask themselves:
1. Does this brand align with our core? Look beyond the numbers, beyond the category data. If it doesn’t connect emotionally, strategically, or culturally, it will never feel like a natural part of the business.
2. Can we make it stronger? Acquiring a brand should mean more than just owning it. Can you add value, unlock new potential, and push it forward in ways that make sense? What assets and acapabitiies do you have in bounties
3. What happens if we don’t buy? Sometimes, growth comes not from grabbing more, but from investing more deeply in what you already have.

On the flip side, when it’s time to divest, businesses need to be just as intentional:

1. Are we letting go of a brand, or of an opportunity we failed to realise? Selling off an underperforming brand can be smart. But sometimes, businesses shed brands not because they don’t have potential, but because they haven’t found the right way to harness it.
2. Who will be its next home? The right buyer can turn a neglected brand into a star. The wrong one can bury it. The responsibility of finding the right steward shouldn’t be underestimated.
3. What does this free us to do? Every divestiture should create focus. If selling a brand doesn’t create space to strengthen what remains, it’s just an exercise in downsizing, not in growth.

Ultimately, the companies that thrive are the ones that know when to stretch and when to release.

The rubber band effect isn’t just inevitable; it’s necessary.

The challenge is making sure that every stretch and every release is purposeful, not reactive. Because progress isn’t just about acquiring more. Sometimes, the real growth comes from knowing what to let go.