The Acquisition of Tiffany & Co. by LVMH

The case study assesses whether the offer by LVMH is enough to acquire Tiffany & Co. Tiffany & Co. is a company with a reputation of over 180 years and whose share has increased in value in recent years. Tiffany deals in charms and perfumes, among other beauty products. Based on its statement of cash flows, Tiffany & Co. generates an income of USD 4.4 billion. This analysis establishes the cost of capital for acquiring Tiffany & Co. Also, the analysis looks into the company's acquisition premium and computes Tiffany's value using the market capitalization approach and the enterprise value approach. Also, the analysis determines the acquisition premium of the acquisition. Incidentally, the analysis determines whether the acquisition deal benefits both companies.

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