This presentation contains the analysis of a prospective acquisition of Bulgari by LVMH. This exercise was done as a part of a case study competition conducted by JPMorgan. The presentation covers various aspects like DCF Valuation, Trading comps, Transaction Comps, Synergy estimation, Acquisition financing etc.

1. THE DEAL JPMorgan Investment Banking Competition Anirban Ray | Sumit Thawrani | Akash Gehani MDI Gurgaon LVMH BVLGARI

11. Valuation Drivers for Bulgari Long Term EBIT Margin (%) 13.40% 14.40% 15.40% 16.40% 17.40% Long Term Growth 1% 7.08 7.12 7.16 7.20 7.23 1.50% 7.39 7.43 7.47 7.50 7.54 2% 7.74 7.78 7.82 7.86 7.89 2.50% 8.15 8.18 8.22 8.26 8.30 3% 8.62 8.66 8.70 8.73 8.77 WACC (%) 7.1% 8.1% 9.1% 10.1% 11.1% Terminal Growth 1.0% 7.4 7.3 7.2 7.0 6.9 1.5% 7.7 7.6 7.5 7.4 7.2 2.0% 8.1 8.1 7.8 7.7 7.6 2.5% 8.5 8.5 8.2 8.1 8.0 3.0% 8.9 8.9 8.7 8.6 8.5 Long Term Growth Rate & EBIT Margin Capital Structures & Terminal Growth of Cash Flows

13. BCG Matrix for Bulgari Jewelry & Watches Perfume Accessories

14. BCG Matrix for LVMH Jewelry & Watches Perfume Wine & Spirits Fashion & Leather goods Selective Retailing

18. Strategic Fit – Value chain match-up Purchase from Suppliers Technology Operations Marketing Sales & Distribution Service Jewelry & Watches Wine & Spirits Perfumes Fashion & Leather goods Accessories Selective Retailing No synergy Strong synergy Medium synergy

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