Analysis on the Acquisition of LVMH on Tiffany& Co.

Abstract

A famous acquisition case happened on Nov. 25. 2019, within the luxury industry-LVMH's acquisition of Tiffany&Co. This paper analyzed the acquisition and focused on LVMH as the purchaser and Tiffany as an acquiree. By using the day of the acquisition as the tipping point, this research will focus on comparing qualitative and quantitative aspects of changes as reasons to support the main argument. Preliminary estimates, the acquisition overall brings benefit to the LVMH whether on its sales revenue or its organizational structure. After all the LVMH is a huge company that has businesses worldwide with numbers of sales streams, this small acquisition won't bring much effect on the whole company's original structure and operation. However, for TIF itself, the acquisition did not provide a decent amount of advantages. Instead, the companies fame and popularity, even sales amount got diminished as it predicted to be in the future.