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Taylormade sold to Korean investment firm
Posted on 5/11/21 at 11:22 am
Posted on 5/11/21 at 11:22 am
1
Posted on 5/11/21 at 11:30 am to pingman
They’ve been bounced around everywhere the last decade or so. I wonder why they can’t make money.
Posted on 5/11/21 at 11:37 am to ell_13
quote:
They’ve been bounced around everywhere the last decade or so. I wonder why they can’t make money.
This is what investment firms do. It looks like the seller made about $1 billion on the sale price in 4 or 5 years. They'll take that and put it into a new high growth company.
They aren't interested in stable companies for a long time.
Posted on 5/11/21 at 11:58 am to Mingo Was His NameO
quote:
This is what investment firms do. It looks like the seller made about $1 billion on the sale price in 4 or 5 years. They'll take that and put it into a new high growth company.
They aren't interested in stable companies for a long time.
Makes me wonder about marketed golf clubs.
Posted on 5/11/21 at 12:31 pm to alpinetiger
quote:
Makes me wonder about marketed golf clubs.
Do you mean you wonder if they are like iPhones, in that they are incredibly inexpensive to produce, yet the manufacturer charges and exorbitant amount of money for them?
Posted on 5/11/21 at 1:04 pm to RummelTiger
I'm sure it's a quite a mark up but R&D that goes into all these products is not cheap.
This post was edited on 5/11/21 at 1:05 pm
Posted on 5/11/21 at 1:37 pm to greenwave
quote:
I'm sure it's a quite a mark up but R&D that goes into all these products is not cheap.
Didn't say that it was, but let's take Callaway for instance. They had sales of $1.6B in 2020 vs. R&D costs of $46MM, which is 2.9% of sales.
According to HBR, a normal manufacturer spends more than 5% on R&D. So, while $46MM isn't chump-change, they could be North of $80MM
Posted on 5/11/21 at 1:39 pm to RummelTiger
quote:
Didn't say that it was, but let's take Callaway for instance. They had sales of $1.6B in 2020 vs. R&D costs of $46MM, which is 2.9% of sales.
According to HBR, a normal manufacturer spends more than 5% on R&D. So, while $46MM isn't chump-change, they could be North of $80MM
I don't know for sure, but I'd think R&D for a golf manufacturer isn't linear spend. They could have been 7-8% a couple of years ago with the Epic which was a big technological upgrade.
Again, just speculation and I'm being lazy, but I'd think you'd need 3 or 4 years of data to get true R&D spend.
Posted on 5/11/21 at 1:41 pm to Mingo Was His NameO
quote:
Again, just speculation and I'm being lazy, but I'd think you'd need 3 or 4 years of data to get true R&D spend.
You are being lazy, as I literally linked the R&D numbers from 2007.
Posted on 5/11/21 at 1:50 pm to RummelTiger
quote:
You are being lazy, as I literally linked the R&D numbers from 2007.
I understand that. My point is R&D spend in 2010 was over 10% higher than in 2014, which to me isn't surprising based on the time frame of real technology advancements in golf equipment. And net sales dropped over that time frame so looking at a one yeer of data doesn't tell the entire picture.
This post was edited on 5/11/21 at 1:50 pm
Posted on 5/11/21 at 2:08 pm to Mingo Was His NameO
YEAR.....SALES.....R&D.....% R&D/Sales
2016.....$872MM.....$33MM.......3.8%
2017.....$1.05B.....$36.5MM.....3.5%
2018.....$1.25B.....$41MM.......3.3%
2019.....$1.7B......$50.5MM.....3.0%
2020.....$1.6B......$46MM.......2.9%
2016.....$872MM.....$33MM.......3.8%
2017.....$1.05B.....$36.5MM.....3.5%
2018.....$1.25B.....$41MM.......3.3%
2019.....$1.7B......$50.5MM.....3.0%
2020.....$1.6B......$46MM.......2.9%
Posted on 5/11/21 at 2:10 pm to ell_13
More power to them. As long as they make quality equipment, who cares?
Posted on 5/12/21 at 12:32 pm to RummelTiger
quote:
YEAR.....SALES.....R&D.....% R&D/Sales
2016.....$872MM.....$33MM.......3.8%
2017.....$1.05B.....$36.5MM.....3.5%
2018.....$1.25B.....$41MM.......3.3%
2019.....$1.7B......$50.5MM.....3.0%
2020.....$1.6B......$46MM.......2.9%
Interesting to see the sales move with the R&D investment. I'm guessing the drop in R&D and sales in 2020 had to do with Covid. Really surprised to only see a 5% reduction in sales given the WuFlu shenanigans.
Posted on 5/12/21 at 12:37 pm to RummelTiger
quote:I'm just a miser is all. I just purchased some used Epic woods and Rogue irons. I really like them. I can't seem to hit the two Jaws wedges with any consistiency though.
Do you mean you wonder if they are like iPhones, in that they are incredibly inexpensive to produce, yet the manufacturer charges and exorbitant amount of money for them?
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