Tiffany acquisition would be lvmh's most challenging yet

Running head: LVMH ACQUIRES TIFFANY 1

LVMH ACQUIRES TIFFANY 2

LVMH acquires Tiffany

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Merge, and accusation process is marked by professional analysis of the prevailing condition and the reflection of the entire context. When LVMH was acquiring Tiffany, there were crucial procedures to be put in bold. The integration of various stakeholders was necessary and could help in risk evaluation. In this case, one of the significant risks that were affecting the entire acquisition process was the significant loss of revenue loss that LVMH (Louis Vuitton Moët Hennessy) had undergone. Nevertheless, the buyer was still on the quest to buy the American luxury jeweler (Tiffany & Co). 1n addition, there was still some economic risk factor that would affect the entire acquisition process (Danziger, 2020).

The portfolio risk factor was another major challenge. It’s caused by capital pricing access and asset model inconsistency. This made it hard to account for the extra return that would be attained from risk frees assets. Consequently, it was hard for the two involved parties to have accounts of return variance and return equals as part of the expected return. Lack of a well-outlined infrastructure and integrated evaluation of the retaining liability was a task that the buyer had to consider. This challenge made the chairman by then, Bernard Arnault, effusive about Tiffany’s possibility even after the deal was signed on February 4- 2020. As the transaction was being planned upon, it was between French corporation imparted and the U.S agency. As a result, there was a rise of impending inconsistent and monetary risk factor (Chancey, 2019).

Considering that the two companies were dealing with a diverse commodity, it was tough to manage the market position. The acquisition would cost the management as they law down new managing market approach for sustainability. Attaining a global symbol of recognition and having a unique portfolio is a debate that had to be evaluated (Haran, 2019). The transaction and exchange were between the French government, and the United States was. It ended up with Wilhelm, who was serving as the corporate business attorney. As mentioned above, are share of challenge and risk that was the entire acquisition process.

References

Chancey. (, 2019). Tiffany files lawsuit against LVMH to enforce merger agreement. Retrieved from https://investor.tiffany.com/news-releases/news-release-details/tiffany-files-lawsuit-against-lvmh-enforce-merger-agreement

Danziger, P. N. (2020, September 12). If LVMH can't get out of the Tiffany acquisition, it may live to regret it, as one lawyer believes. Retrieved from https://www.forbes.com/sites/pamdanziger/2020/09/11/lvmh-is-likely-to-be-forced-to-go-through-with-the-tiffany-acquisition-and-live-to-regret-it/#7b070849224a

Haran, E. D. (2019). SEC filing. Retrieved from https://investor.tiffany.com/node/21866/html