What was the purchase price allocated to liabilities assumed by 360 Painting in the Rooterman acquisition?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase price was allocated as follows:
| Current assets | $ 24,145 |
|---|---|
| Property and equipment | 112,624 |
| Other assets | 2,500 |
| Assets acquired | 139,269 |
| Liabilities assumed | (139,268) |
| Purchase price | $ 1 |
Rooterman
In January 2022, the Company entered into an asset purchase agreement to acquire substantially all of the assets of A Corp, Inc. for an aggregate net purchase price of $3,900,000. The transaction was funded by $3,950,000 in draws on the existing term loan facility and $42,267 in cash on hand. Rooterman is a sewer and drain maintenance and repair franchising company and has been acquired to allow for the expansion of the Company's presence within its home services franchising platform. All goodwill that has been recognized in the acquisition related to intangible assets that do not qualify for separate recognition. Identified goodwill is expected to b
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting acquired Rooterman in January 2022 through an asset purchase agreement. The aggregate net purchase price for substantially all of the assets of A Corp, Inc. (Rooterman) was $3,900,000. The acquisition was financed using $3,950,000 from an existing term loan facility and $42,267 in cash. Transaction costs of $33,017 were incurred and expensed by 360 Painting. The FDD states that the purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair values. However, the specific amount allocated to the liabilities assumed is not disclosed in this excerpt. A prospective franchisee should ask 360 Painting for more details about the liabilities assumed in the Rooterman acquisition.