Analysis Of LVMH Group Continuous M&A

Mergers and Acquisitions(M&A)has already been one of the most important strategies for enterprise development in capital market.While in luxury industry,M&A is a direct way to obtain brands.Total global luxury market sales reached(?)1200 billion in 2018,and luxury sales in China also reached a huge number in 2018,(?),2 billion,China's luxury spending has been 33%of the global market share,reaching the highest among all countries and areas.With the development of china and the globalization,more and more Chinese companies have been involved in the M&A ofinteteational luxury brands,however few of them succeeded.Though some cases occurred,pending for examining in the future.Since the founding of LVMH Group in 1987,LVMH Group has already acquired more than 130 brands,becoming the largest company in luxury industry.So it s worth studying.about its continuous M&A for us.At first,this paper introduces the relevant principles of M&A and the current situation of LVMH group and the luxury industry.Secondly we listed the continuous M&A process of LVMH Group,and selected some cases as examples to briefly introduce.Thirdly,we used PEST to analyze the external environment of LVMH's M&A,combining with cases to analyze the motivation of M&A.Then we summarize the reasons why LVMH group lunched several hostile M&A,including(1)Increase the acquisition possibility through hostile takeover.(2)interfere the normal operation of the target company.(3)Attempt to take control of the target company by a lower cost.Then we analyzed the choice of LVMH Group's M&A target,the payment and the timing.Finally,we analyzed the M&A of LVMH Group from three aspects,culture,human resource,resources and system.And we analyzed the f nancial indicators to access the performance of continuous M&A,and scored the financial performance by principal component analysis.It can be found that the continuous M&A of LVMH Group has positive financial effects on the group.With the analysis,we conclude the following points,(1)Implement a reasonable M&A strategy.(2)Classify products according to the LVMH Group's M&A target selection.(3)Enterprises should focus on the integrated development after mergers and acquisitions.(4)Make rational use of hostile M&A and be well prepared to prevent hostile M&A.The research on the continuous M&A of LVMH Group can offer reference for the M&A of Chinese luxury companies.