How the Hermes Family Held Onto Control Through a Holding Company

Episode 117 of Family Business Stories explores how the Hermès family preserved control of the luxury house through a unique holding structure. In 2022, the family faced a hostile takeover attempt from Bernard Arnault's LVMH. Rather than sell, they locked down voting rights by converting shares into a limited partnership called H51, which held 64% of the shares and 73% of voting rights. We break down the mechanics: how the family used a partnership structure with non-transferable shares to prevent external takeover, and why this might be a more durable model than the dual-class share structures used by tech companies like Snap or Google. The episode also covers the deeper tension at the heart of family firms—how to preserve control while still allowing for liquidity and succession—and why the Hermès model, with its roots in the 1970s, became a case study for the rest of the luxury industry. Lucas and Luna also discuss a key number: the 54% premium that LVMH's offer represented, and why the family still said no. #Hermes #FamilyBusiness #Luxury #Succession #HoldingCompany #TakeoverDefense #LVMH #BernardArnault #H51 #DualClassShares #Business #Finance #FexingoBusiness #BusinessPodcast #CorporateGovernance #FrenchBusiness #LuxuryGoods #ControlWithoutOwnership Keep every episode free: buymeacoffee.com/fexingo