Hermes International: Protecting its Family Business from LVMH’s Hostile Takeover
The case is structured to achieve the following teaching objectives:
- Study how the core values of craftsmanship, quality, and its rich history made Hermes one of the most renowned luxury brands in the world.
- Understand how fostering a culture of creativity and perfection was crucial in achieving success for the family-managed business.
- Critically analyze the hostile takeover attempt by LVMH.
- Understand the defense strategies adopted by Hermes to thwart LVMH’s hostile takeover.
- Analyze the role of the Hermes family’s board in the takeover battle.
- Understand how the takeover would dilute the family-managed business’ core values and culture.
- Discuss the issues and challenges in keeping family-managed businesses independent.
|CORE VALUES AND CULTURE|
|LVMH'S HOSTILE TAKEOVER ATTEMPT?|
|PRESERVING ITS CORE VALUES AND CULTURE AND KEEPING THE FAMILY-MANAGED BUSINESS INDEPENDENT|
|AMF IMPOSES A FINE ON LVMH|
|BRINGING IN A FAMILY MEMBER AS SUCCESSOR|
Hermes International, LVMH, Axel Dumas, Bernard Arnault, Family-managed business,Craftsmanship, Core values, Culture, Creativity, Cash-settled equity swaps, Hostile takeover, Family legacy, Succession planning, Paris Commercial Court, Autorité des Marchés Financiers, Groupe Arnault SAS