What was the aggregate purchase price for 360 Painting to acquire Insight Business Solutions, LLC?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price was allocated as follows:
| Current assets | $ - |
|---|---|
| Goodwill | 1,635,000 |
| Intangible assets | 5,190,000 |
| Assets acquired | 6,825,000 |
| Liabilities assumed | (75,000) |
| Purchase price | $ 6,750,000 |
Insight Business Solutions
In January 2023, the Company entered into a membership interest purchase agreement to acquire Insight Business Solutions, LLC for an aggregate purchase price of $1. Insight operates a contact center and has been acquired to allow the Company's franchisees to process communications with customers within its home services franchising platform.
As a result of the transaction, the Company incurred and expensed tra
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting acquired Insight Business Solutions, LLC in January 2023 for an aggregate purchase price of $1. Insight Business Solutions operates a contact center. 360 Painting acquired Insight Business Solutions to allow its franchisees to process communications with customers within its home services franchising platform.
In connection with the acquisition, 360 Painting incurred transaction costs of $33,017, which were expensed and included in transaction costs on the consolidated statements of operations. The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values, following guidance issued by the FASB for business combinations.
This acquisition indicates 360 Painting's strategy to integrate and streamline operations for its franchisees by providing a centralized contact center. The relatively low purchase price of $1 suggests that the primary value of Insight Business Solutions may have been in its operational capabilities and strategic fit within 360 Painting's franchise system rather than tangible assets.