How did Benjamin Franklin Plumbing fund the DRYmedic acquisition?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
their estimated fair values as follows:
| Current assets | $ 3,139 |
|---|---|
| Operating lease right-of-use assets | 1,115 |
| Property and equipment | 716 |
| Goodwill | 49,394 |
| Intangible assets and other assets (1) | 38,055 |
| Deferred tax assets | 458 |
| Assets acquired | 92,877 |
| Operating lease liabilities | (1,115) |
| Deferred revenue | (8,089) |
| Other liabilities assumed | (4,471) |
| Purchase Price | $ 79,202 |
(1) Identifiable intangible assets acquired include referral relationships, trademarks, franchise relationships and non-competition agreements which will be amortized on a straight-line basis over their preliminary useful lives of 15 years, 25 years, 15 years and 1 years, respectively.
DRYmedic
On November 4, 2022, the Company entered into a purchase and sale agreement to acquire 100% of the outstanding equity interests of DRYmedic Restoration Services, LLC and its subsidiaries for a purchase price of $45,556. DRYmedic provides disaster restoration services with a focus on water damage restoration, fire damage repair and mold removal and has been acquired to allow for the expansion of the Company's presence within its home services franchising platform. The acquisition was funded with rollover equity of $18,984 and borrowings from the Company's 2022 A-1 loan. Goodwill largely consists of strategic and synergistic opportun
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, Benjamin Franklin Plumbing's parent company acquired DRYmedic Restoration Services, LLC on November 4, 2022. The acquisition was made to expand the company's home services franchising platform. The purchase price for 100% of the outstanding equity interests of DRYmedic and its subsidiaries was $45,556.
The acquisition was funded through a combination of rollover equity and borrowings. Specifically, $18,984 was funded via rollover equity, and the remainder was funded through borrowings from the company's 2022 A-1 loan.
Goodwill was recorded as a result of the transaction, largely consisting of strategic and synergistic opportunities from combining DRYmedic with the company's existing businesses. The goodwill resulting from this acquisition is tax deductible. Transaction costs of $1,077 were incurred and expensed as a result of the transaction.