Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27–29, 2023, Tianjin, China

Research Article

Performance Analysis of LVMH Group's Acquisition of Tiffany Group – A Quantitative Study Based on Financial Indicators

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  • @INPROCEEDINGS{10.4108/eai.27-10-2023.2341973,
        author={Huairen  Zhang and Jishun  Niu and Xinxue  Liu},
        title={Performance Analysis of LVMH Group's Acquisition of Tiffany Group -- A Quantitative Study Based on Financial Indicators},
        proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China},
        publisher={EAI},
        proceedings_a={ICEMBDA},
        year={2024},
        month={1},
        keywords={lvmh group mergers and acquisitions (m\&a) m\&a performance financial indicators},
        doi={10.4108/eai.27-10-2023.2341973}
    }
    
  • Huairen Zhang
    Jishun Niu
    Xinxue Liu
    Year: 2024
    Performance Analysis of LVMH Group's Acquisition of Tiffany Group – A Quantitative Study Based on Financial Indicators
    ICEMBDA
    EAI
    DOI: 10.4108/eai.27-10-2023.2341973
Huairen Zhang1, Jishun Niu1,*, Xinxue Liu1
  • 1: Beijing Institute of Fashion Technology
*Contact email: 1990374837@qq.com

Abstract

Globalization and economic growth have intensified business competition, prompting expansion strategies like mergers and acquisitions (M&A). Yet, M&A success and predefined goals' complexity necessitates evaluation. Domestic research has predominantly focused on sectors like manufacturing, pharmaceuticals, and real estate, leaving the luxury goods industry under explored. Despite global luxury goods growth, China lags in luxury brand development and acquisitions. This study examines LVMH Group's acquisition of Tiffany Group, drawing data from sources such as Bloomberg, LVMH financial reports, Deloitte's Luxury Global Power Reports, and the internet. It provides an introduction to research significance, LVMH and Tiffany Group overview, and luxury goods industry analysis. It delves into acquisition motives, context, outcomes, and underlying motivations. The study reviews concepts and theories through a literature review. Finally, using financial metrics, it quantitatively assesses LVMH's pre-and post-acquisition performance, gauging merger impact. This research expands academic horizons by examining international M&A in the luxury goods sector, offers a reference for future M&A performance studies, and supports China's emerging luxury goods enterprises.