What was the total value of intangible assets acquired 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
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 Rooterman in January 2022 for $3,900,000. The FDD states that all goodwill recognized in the acquisition related to intangible assets that do not qualify for separate recognition. The document does not specify the exact value of the intangible assets acquired.
Because the FDD does not provide a specific value for the intangible assets, prospective franchisees should directly ask 360 Painting for more detailed information about the valuation of intangible assets in the Rooterman acquisition. Understanding how these assets are valued and contribute to the business can be crucial for assessing the financial health and future prospects of 360 Painting.
It is common practice for franchisors to provide an overview of significant acquisitions in their FDDs, but the level of detail can vary. While the FDD mentions the purchase price and the nature of the acquired company, it lacks a breakdown of the asset allocation, including the value of intangible assets. This level of detail would typically be found in the company's audited financial statements, which are included in Item 21 of the FDD.