This article was published on July 25, 2025, at 2:59 p.m. on the ChosunBiz MoneyMove site.
Global investment bank Goldman Sachs is preparing to exercise a right of first refusal for TaylorMade in partnership with domestic fashion corporation F&F.
While some evaluate Goldman Sachs' initial contract with a buyer in this acquisition as a 'quick preemption,' there is also a perspective that 'there wouldn't have been any alternatives other than F&F from the start.'
Goldman Sachs is currently advising on the spin-off of another global golf company, Callaway, so if it acts as the lead for the acquisition of its competing entity, TaylorMade, a conflict of interest controversy may arise. As a result, joining forces with other buyers could lead to disadvantages imposed by the sale side, which is concerned about conflicts of interest, but it is highly likely that they believe it is unavoidable if they take the lead for F&F, which possesses the strong weapon of the right of first refusal.
According to the investment banking industry on the 25th, Goldman Sachs has recently signed an advisory contract with F&F and is preparing to exercise the right of first refusal for TaylorMade. If a third candidate proposes an acquisition, F&F has the right to acquire TaylorMade first under the same price terms and shareholder agreements within two weeks. Therefore, the probability of F&F successfully acquiring TaylorMade will vary depending on how much other buyers propose its corporate value.
This deal is reportedly being directly handled by Ahn Jae-hoon, the head of Goldman Sachs' Korean investment banking division. As the expected sale price in the market reaches between 4 trillion won and 5 trillion won for this 'big deal,' it is said that Ahn is strongly committed to ensuring its success.
In some corners of the investment banking industry, there is speculation that the reason Goldman Sachs quickly partnered with F&F is that it anticipates a high likelihood of F&F's acquisition. However, looking into the situation, there are other underlying reasons.
Goldman Sachs is currently advising on the partitioning of the global golf brand Callaway, aimed at a potential sale of Topgolf through a spin-off.
Consequently, it is highly likely that JP Morgan and Jefferies, the lead advisors for the sale of TaylorMade, will demand that 'Goldman Sachs should not be involved' when prospective buyers select their acquisition advisors. This is because if Goldman Sachs participates as the lead advisor for the acquisition of TaylorMade, there is a possibility that information about TaylorMade could reach Callaway.
The so-called 'Chinese wall' (a method of blocking information exchange that could result in conflicts of interest within a corporation or organization) is a principle among investment banks that they do not share information about clients internally; however, it is a fact that it's likely to be concerning from the perspective of those selling TaylorMade.
However, if Goldman Sachs chooses to partner with F&F instead of other buyers, it becomes difficult for the selling side to protest. This is because F&F has the right of first refusal regardless, positioning it differently from other buyers who need to consider the interests of the sellers.
In fact, now that F&F has appointed Goldman Sachs as the lead advisor, the investment banking industry is pointing out that it is a typical conflict of interest case for Goldman Sachs to simultaneously handle the spin-off or sale advisory for Callaway and the acquisition advisory for F&F's TaylorMade.
An investment bank official stated, 'Goldman Sachs has previously performed advisory roles for both sides of sales within the same industry, and whether the information barriers (Chinese walls) are robust is something no one can guarantee. It is unclear what kind of contracts Goldman Sachs has signed with F&F this time, but it is highly likely that it has gone beyond simple advisory to include attracting equity investors and handling liabilities, which clearly constitutes a conflict of interest.'