What was the amount of goodwill acquired by Better Homes And Gardens Real Estate in 2023?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Goodwill acquired during the year ended December 31, 2023 relates to the acquisition of one real estate brokerage operation.
| Goodwill (gross) at December 31, 2022 $ | 3,953 | $ 1,088 | $ 455 | $ | 5,496 | |
|---|---|---|---|---|---|---|
| Goodwill acquired (a) | — | 1 | — | 1 | ||
| Goodwill reduction | — | — | — | — | ||
| Goodwill (gross) at December 31, 2023 | 3,953 | 1,089 | 455 | 5,497 |
(a) Generally amortized over a period of 30 years.
(b) Includes impairment charges which reduced goodwill by $25 million during 2023, $394 million during 2022, $540 million during 2020, $253 million during 2019, $1,279 million during 2008 and $507 million during 2007.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Better Homes And Gardens Real Estate's 2025 Franchise Disclosure Document, the total goodwill acquired during the year ending December 31, 2023, was $1. This goodwill is specifically linked to the acquisition of one real estate brokerage operation. Goodwill, in accounting terms, represents the intangible assets acquired in a business combination that are not separately identifiable, such as brand reputation and customer relationships.
For a prospective Better Homes And Gardens Real Estate franchisee, understanding goodwill is crucial because it reflects the value the company places on its acquisitions and how it manages its intangible assets. The FDD also notes that goodwill is generally amortized over a period of 30 years. Amortization is the systematic reduction of the book value of an intangible asset over its useful life.
It is important to note that while Better Homes And Gardens Real Estate acquired $1 in goodwill, the company also had impairment charges that reduced goodwill by $25 million during 2023. This indicates that while the company is acquiring new assets, it is also recognizing losses in the value of existing goodwill, which could be due to various factors such as market conditions or underperformance of acquired entities. Franchisees should consider these factors when evaluating the financial health and stability of Better Homes And Gardens Real Estate.