Research On The Performance Of LVMH Group’s Merger And Acquisition Of Bulgari

The competitive pressure of enterprises is inevitably increasing with the accelerating process of globalization and the rapid development of economy.In order to gain competitive advantage and survive better in this environment,many enterprises choose the expansion strategy M&A.According to the report of French securities network on December 31,2021,the total amount of global M&A transactions exceeded $5 trillion for the first time in 2021,breaking the record of $4.5 trillion set in 2007.Can the enterprise achieve the expected goal after M&A? How to judge whether M&A is successful? M&A performance can effectively answer these questions.However,at present,the research on M&A performance of Chinese scholars mostly focuses on the empirical research of manufacturing industry,pharmaceutical industry,real estate industry and other industries,and the analysis of M&A cases of luxury enterprises is very few.Since the 21st century,the luxury industry has developed rapidly.However,due to the high barriers to entry,no substitutes and high industry concentration in the luxury industry,my country’s development in luxury brands and in the field of corporate mergers and acquisitions has are far behind Europe.This article chooses LVMH Group as a case,because its own development is a history of mergers and acquisitions,which is of great reference value for the development of luxury goods enterprises in my country.Firstly,the paper expounds the research background and significance,and determines the research methods;Then,it combs the literature at home and abroad from two aspects:the motivation of M&A and the impact of M&A on enterprise performance;Secondly,literature research and quantitative analysis are used to sort out the relevant concepts and theoretical basis;Next,starting from the case of LVMH group’s merger and acquisition of Bulgari,this paper analyzes the current situation of the luxury industry,introduces the companies of both sides,explores the merger motivation from the reasons,background and results of LVMH group’s merger and acquisition of Bulgari,and understands the post merger integration process of LVMH group;Finally,it analyzes the performance of enterprises after M&A from the short-term and long-term aspects,and comes to the conclusion that the short-term performance and long-term performance of LVMH group have improved.In addition,it also summarizes the reasons and influencing factors of LVMH group’s good performance after M&A from the M&A process of LVMH group,highlighting the research significance of the article.Based on this,some suggestions are put forward for luxury enterprises: appropriate payment methods should be selected during M&A;The target enterprises should be selected reasonably;Pay attention to the synergy of post merger integration.This paper selects the M&A cases of foreign luxury enterprises with few previous studies for research,hoping that more people will no longer be limited to domestic enterprises,but open their horizons and focus their research on global enterprises.At the same time,it also hopes to provide reference for future generations to study the M&A performance and provide reference for the rapid development of Chinese luxury enterprise M&A.