Valuation Competition

register here: https://docs.google.com/forms/d/e/1FAIpQLSfUCY5wuNc7FoXi_rP9CKmkg4-_H1ifgzFqakWbjbAfprnS7w/viewform

Company Overview

LVMH (Louis Vuitton Moët Hennessy) is a multinational luxury goods conglomerate based in France. The company was founded in 1987 through the merger of fashion house Louis Vuitton and champagne and spirits company Moët Hennessy. LVMH now owns over 70 luxury brands in six different sectors: fashion and leather goods, perfumes and cosmetics, watches and jewelry, wines and spirits, selective retailing, and hospitality.

Some of the company’s most well-known fashion and leather goods brands include Louis Vuitton, Dior, Fendi, Celine, and Givenchy. In the perfumes and cosmetics sector, LVMH owns brands such as Guerlain, Benefit Cosmetics, and Fresh. In watches and jewelry, the company owns brands such as Bulgari, Tag Heuer, and Hublot. LVMH also has a strong presence in the wines and spirits industry with brands such as Moët & Chandon, Veuve Clicquot, and Hennessy.

LVMH operates through a decentralized structure, allowing its brands to maintain their unique identities while benefiting from the group’s resources and expertise in areas such as marketing, supply chain management, and financial management.

Strategic Acquisition

At LVMH, the company is constantly looking for new opportunities to expand and diversify thier portfolio of brands. As a global leader in the luxury market, they are committed to providing our customers with the highest quality products and experiences.

They recognize that the luxury industry is constantly evolving, and they believe that acquiring a new business would allow us to continue to grow and innovate. Through this acquisition, LVMH hopes to bring new ideas and perspectives to their existing portfolio and offer the customers even more options to express their unique sense of style.

They are actively exploring potential acquisition targets and are looking for brands that share thier values of craftsmanship, innovation, and sustainability. They are excited about the prospect of expanding thier offerings and continuing to push the boundaries of what luxury can be.

Competition Rules

In this competition, your group should take the role of investment advisor to LVMH. Your team (max 4 people) ultimate objective is to advise LVMH on a target company for the acquisition. Your final project should include the following:

1. Industry and Strategic Analysis with focus on the sources of synergies

  • Describe your company.
  • Do a 5-forces analysis.
  • Analyze the strategy of the firm, the reason why LVMH should acquire it, and outline possible synergies.

2. Forecasting

  • Make assessments about what the future balance sheets, income statements, and cash flow statements will look like.

3. Valuation

  • Value the selected firm using appropriate methods.
  • For best results, make sure this analysis adheres to valuation standards and includes features such as sensitivity analysis.

The final pdf should be maximum of 5 content pages in pdf format.  

Deadlines

Competition starts: March 21st

Submission deadline: April 19th

Please send your pdf to the following email: bocconibsia@gmail.com

Finalists will then be selected and they will have to pitch their companies in front of a jury.

Disclaimer: Our university association is not affiliated with LVMH in any way. The analysis and valuation presented in our competition are based on publicly available information and are for educational purposes only. The information presented should not be taken as professional advice, and any decisions made based on this information are made at your own risk. We do not endorse or recommend any investment decisions based on this analysis. Please consult a financial professional for personalized investment advice.