As of what date was the purchase price allocation process complete for Amerispec Inspection Services' acquisition?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
rovisional measurements are subject to change and such changes could be significant.
Transaction related costs of $467,000 were paid and included as operating expenses in the consolidated statements of comprehensive loss for the year ended December 31, 2024.
2023 Transaction, As Restated
As discussed in Note 1, the Company purchased all the membership interests in the Operating Company in conjunction with the Transaction on March 31, 2023. The total purchase price was approximately $25,646,000, which was funded by equity contributions.
The Transaction was recorded in accordance with ASC 805: Business Combinations, except for as described in Note
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the purchase price allocation process for the 2023 transaction was completed as of December 31, 2023. This process involved allocating the consideration paid to the assets acquired and liabilities assumed based on their estimated fair values at the time of acquisition. The total purchase price for the membership interests in the Operating Company, acquired on March 31, 2023, was approximately $25,646,000, funded by equity contributions.
For a prospective Amerispec Inspection Services franchisee, this information provides insight into how the company values its assets and liabilities during acquisitions. Understanding the purchase price allocation process can be useful for franchisees as it reflects the financial management and accounting practices of the franchisor. The completion date indicates the point at which Amerispec Inspection Services finalized the valuation of acquired assets and liabilities, which is a standard accounting procedure following a business combination.
The transaction was recorded in accordance with ASC 805: Business Combinations, except as described in Note 2 related to the separately identifiable intangible assets. Any excess of the purchase price over the allocated amounts was recorded as goodwill. Goodwill includes the value of customer relationships, workforce in place, the ability to generate future profits, and other unidentifiable intangible assets. This accounting treatment is typical in acquisitions, where the difference between the purchase price and the fair value of identifiable net assets is recognized as goodwill, representing the intangible value of the acquired business.