M&A strategies in the luxury industry : does M&A create value and increase performance for luxury conglomerates ? The case of LVMH / Catarina Maria BABAYANS

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M&A strategies in the luxury industry : does M&A create value and increase performance for luxury conglomerates ? The case of LVMH / Catarina Maria BABAYANS

Dissertation/Thesis/Student Research Project

BABAYANS, Catarina Maria. Auteur

Published by ESCP Europe. Paris - 2012

Source : Ebsco collections

Item type

Dissertation/Thesis/Student Research Project

Dissertation

Third year Cycle Master 2

Language

anglais

Pages

86 p.

Publication year: 2012

Note

Annexes, illustrations.

Note

Bibliography

This paper examines the value implications of mergers and acquisitions (M&A) made by conglomerates in the luxury sector, based on the case study of LVMH. It studies the acquisition of Bulgari by LVMH to determine if there was value creation. Literature review demonstrates that transactions executed by conglomerates that engage in frequent acquisitions do not significantly create value. In the case study, positive announcement effects occur only over a short period of time, and become negative when the period of analysis is extended. Findings are ambiguous, but suggest that luxury conglomerate’s acquisition strategy can drive value creation, but should be considered carefully and combined with organic growth in order to succeed.

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