Tips On Spotting Doomed M&A Deals [Forbes]
Topgolf Callaway Brands Corp. (MODG)
Company Research
Source: Forbes
The Washington Post via Getty Images It is not solely with the benefit of hindsight that Callaway Golf's 2020 acquisition of Topgolf, currently being unwound just four years later, appears ill-fated from the get-go. The day after the deal was announced, golf equipment manufacturer Callaway's stock price plunged by 19%. A small decline in the acquirer's shares, say 5%, is normal in a stock-for-stock acquisition. The immensity of the drop in this case, however, indicated that equity investors suspected no good would come of acquiring Topgolf, an operator of golf driving ranges that also feature “loud music, giant targets, giant TVs, and hand-crafted food & drinks.” Red Flags for M&A Failure Investors' reservations were well founded, according to the authors of The M&A Failure Trap: Why Most Mergers and Acquisitions Fail and How the Few Succeed (John Wiley & Sons, 2024) Baruch Lev and Feng Gu identify several characteristics that gave the deal even worse odds than the 70%-75% over
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News
- Topgolf To Open One of Its Largest Venues Yet in Burlingame On Dec. 13 [Yahoo! Finance]Yahoo! Finance
- Topgolf To Open One of Its Largest Venues Yet in Burlingame On Dec. 13PR Newswire
- Topgolf Adds Avon to its 2025 Lineup of Venue Openings [Yahoo! Finance]Yahoo! Finance
- Topgolf Adds Avon to its 2025 Lineup of Venue OpeningsPR Newswire
- 10 Cyber Monday golf deals with up to 43% off Callaway, Titleist, TaylorMade and more. [USA TODAY]USA TODAY
MODG
Earnings
- 11/12/24 - Beat
MODG
Sec Filings
- 11/12/24 - Form 10-Q
- 11/12/24 - Form 8-K
- 10/31/24 - Form SC
- MODG's page on the SEC website