Cross-Border M&A: Challenges, success Factors, and the transformation of Bottega Veneta

Cross-Border M&A: Challenges, Success Factors, and the Transformation of Bottega Veneta This thesis examines how mergers and acquisitions (M&A) operate, with a particular focus on cross-border deals in the luxury fashion industry. It explores how international companies can grow by acquiring creative brands, while still protecting their identity, cultural heritage, and long-term value. The study looks at the business strategies, legal tools, and integration models that help make these operations successful. The first chapter introduces the main concepts related to M&A, including value creation, integration challenges, and the role of intangible assets. It highlights how, in the luxury sector, elements like brand image, craftsmanship, and creative direction are often more important than financial performance alone. The second chapter focuses on cross-border M&A, with special attention to the Italian context and the concentration of artisanal know-how and production networks in Northern Italy. It discusses the strategic interest that international groups have in acquiring Italian brands and how cultural differences and legal protection mechanisms can shape the outcome of a deal. The third chapter presents a case study on the acquisition of Bottega Veneta by the French group PPR (now Kering) in 2001. The case is compared to the earlier acquisition of Gucci, showing how the two operations followed very different paths. While the Gucci deal was fast, highly competitive, and centralized, the Bottega Veneta acquisition was gradual, flexible, and designed to preserve the brand’s Italian roots. It included earn-out clauses, IP protections, and a hybrid governance model that kept creative and operational functions in Italy, while strategic direction came from Paris. The results of this approach were positive: the brand returned to profitability, sales grew rapidly, and the global retail network expanded. The case demonstrates how a balanced cross-border M&A strategy, one that respects local culture while leveraging international scale, can lead to long-term success in the luxury industry.