Acquisition Framework
How LVMH Systematically Acquires Luxury Brands
75+ brands, one systematic playbook—replicable at any scale
The System
LVMH has acquired 75+ luxury brands over 40 years. Not random deals. Systematic acquisition playbook refined through decades.
The LVMH Acquisition Criteria
- Heritage: Brand must have authentic story (ideally 50+ years old)
- Craftsmanship: Product excellence, not just marketing
- Under-Distributed: Quality exceeds current market penetration
- Family-Owned: Founder/family wants to exit or needs capital
- Profitable (or Clear Path): Economics work, just need scale
Post-Acquisition Playbook
Phase 1: Preserve Creative Autonomy (Year 1)
- Keep creative director/designer (the brand's soul)
- Don't change product immediately
- Understand what makes brand special
Phase 2: Add Distribution (Years 1-3)
- LVMH boutiques worldwide
- Department store partnerships
- E-commerce platforms
- Result: Revenue 2-5x in 3 years
Phase 3: Operational Excellence (Years 2-5)
- Centralize back-office, finance, HR
- Keep creative/production independent
- Improve margins through shared services
Phase 4: Long-Term Hold (Forever)
- LVMH rarely sells brands
- Appreciation over decades
- Portfolio compounds
The Results
75+
Brands (Dior, Fendi, Givenchy, etc.)
€86B
Revenue (2023)
€380B
Market Cap
Example: Dior Acquisition
- Acquired: 1984 (€250M)
- Revenue then: €120M
- Revenue now: €8B+ (67x growth)
- Value created: €60B+ (240x return)
How to Replicate (At Smaller Scale)
Your Version: €5M Luxury Brand Roll-Up
Target: Small French luxury brands (€2-10M revenue)
Acquisition Strategy:
- Identify 10-15 potential targets (heritage, quality, under-distributed)
- Acquire 3-5 over 24 months (€5-15M each)
- Keep creative teams separate (preserve brand identity)
- Centralize distribution, marketing, back-office
- Expand to Asia (premium positioning for French brands)
- Exit to larger luxury group or strategic at 5-8x EBITDA (vs 2-3x you paid)
ROI Target: 3-5x in 5 years