What was the stated purpose of 360 Painting's acquisition of Window Gang?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
id expenses, accounts payable, accrued liabilities and deferred franchise fees approximate fair value because of the short maturity of the instruments. The carrying value of long-term debt approximates fair value as the stated interest rates are at market rates.
3. Acquisitions
Window Gang
In May 2023, the Company entered into an asset purchase agreement to acquire substantially all of the assets of Window Gang Ventures Corporation, Inc. for an aggregate net purchase price of $6,750,000. The transaction was funded by $6,100,000 in draws on the existing term loan facility and $750,000 in deferred consideration. Window Gang is a window cleaning 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 intangibl
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, acquired Window Gang in May 2023. The stated purpose of this acquisition was to facilitate the expansion of the company's presence within its home services franchising platform. The purchase price for Window Gang Ventures Corporation, Inc. was an aggregate net amount of $6,750,000. This was funded by $6,100,000 in draws on an existing term loan facility and $750,000 in deferred consideration.
For a prospective 360 Painting franchisee, this acquisition indicates a strategic move by the parent company to diversify and strengthen its position in the home services market. By adding a window cleaning franchise like Window Gang to its portfolio, Premium Service Brands aims to create synergies and potentially offer bundled services or cross-promotional opportunities across its various brands. This could lead to increased brand recognition and customer loyalty for all franchises under the Premium Service Brands umbrella, including 360 Painting.
It's also worth noting that the company incurred transaction costs of $103,047 related to the acquisition. These costs are included in transaction costs on the consolidated statements of operations. Additionally, all goodwill recognized in the acquisition related to intangible assets that do not qualify for separate recognition and is expected to be deductible for tax purposes. This financial detail provides transparency into the costs associated with such acquisitions and how they are accounted for in the company's financial statements.