What amount of goodwill was recognized by 360 Painting in the acquisition of Window Gang?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
llows:
| 2025 | $ 1,492,392 |
|---|---|
| 2026 | 1,492,392 |
| 2027 | 1,492,392 |
| 2028 | 1,491,411 |
| 2029 | 1,487,316 |
| Thereafter | 3,977,202 $ 11,433,105 |
Goodwill
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting's parent company, Premium Service Brands, recognized $1,635,000 in goodwill as a result of acquiring Window Gang. The acquisition occurred in May 2023 with an aggregate net purchase price of $6,750,000. The company funded the transaction through a combination of draws on an existing term loan facility ($6,100,000) and deferred consideration ($750,000).
The FDD specifies that all goodwill recognized in the acquisition related to intangible assets that do not qualify for separate recognition. This means the goodwill isn't tied to specific identifiable assets like patents or trademarks, but rather to the overall value of the acquired business. The identified goodwill is expected to be deductible for tax purposes, which could provide a financial benefit to the company.
Goodwill, in accounting terms, represents the excess of the purchase price over the fair value of identifiable net assets acquired. For a prospective 360 Painting franchisee, this information provides insight into the financial strategies and growth initiatives of the parent company, Premium Service Brands, and its approach to expanding its portfolio of franchise brands.