What was the estimated fair value of other assets acquired by 1 800 Packouts from Mosquito Shield?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
chase agreement included payment of rollover interest of $2,000,000 wherein the former owner was granted an ownership interest in the Company, which was included in the total consideration paid for the acquisition.
In relation to these acquisitions, the Company elected to early adopt Accounting Standards Update 2021-08, Business Combinations (ASU 2021-08). ASU 2021-08 allows a Company to recognize and measure contract assets and contract liabilities in accordance with ASC 606, Revenue from Contracts with Customers. Accordingly, the contract assets and contrac
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the estimated fair value of other assets acquired from Mosquito Shield was $392,928 during the year ended December 31, 2022. This figure is part of a summary detailing the estimated fair values of all assets acquired and liabilities assumed in the acquisition.
This valuation is significant for prospective franchisees as it provides insight into the types and values of assets 1 800 Packouts acquires when expanding through acquisitions. Understanding these asset valuations can help franchisees assess the financial strategies and decisions of the company.
It's important to note that these values are based on estimates determined by management at the time of acquisition. The actual realized values may differ over time due to various market conditions and operational factors. Reviewing these figures in the context of the overall financial health of 1 800 Packouts can offer a more comprehensive understanding of the company's financial practices.