Growth through Mergers and Acquisitions in the luxury industry: the LVMH case

Mergers and acquisitions have proven to be one of the most commonly employed methods by businesses to achieve their development and growth aspirations, particularly in recent years. Despite this encouraging tendency, several studies and research on the issue have failed to reach a consensus on whether or not value is created as a result of these activities. To contribuite on the literature on the issue, it was decided to investigate a specific industry, that of luxury, by delving into its most prominent exponent, the LVMH Group. With the present work we want to identify the tactics behind the key purchases in the last ten years, as well as the impact they have had. Furthermore, it intends to asses if the French Group's current and consistent purchases have produced value as well as to examine its economic and financial situation. The results suggest that long-term value was produced for shareholders, but this can not be extended to the short term due to the contradicting outcomes. When compared to the competitor Kering, the LVMH's financial condition likewise proven steady.