When did Bw Premier Collection's parent company enter into an agreement to purchase AutoClerk, Inc.?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
rs ended November 30, 2024 and 2023.
AutoClerk
On July 31, 2019, the Company entered into and closed a definitive Share Sale and Purchase Agreement with the shareholders of AutoClerk, Inc. ("AC"), to purchase 100% of the outstanding shares of AC. The AC acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations.
The total purchase price was allocated based upon: (i) the amounts reported in the AC historical financial statements for any assets that were reported at fair value in accordance with AC's historical accounting policies, and (ii) management's estimates of fair value. The Company determined estimated fair value for other intangible assets with the assistance of valuations performed by third-party specialists. Other intangible assets of developed technology and acquired customers were valued at $1.9 million and $1.5 million, respectively. To the extent the consideration exceeded the fair value of the net assets acquired in th
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 FDD, Bw Premier Collection's parent company, Best Western International, Inc., entered into a definitive Share Sale and Purchase Agreement with the shareholders of AutoClerk, Inc. on July 31, 2019. Through this agreement, Best Western International, Inc. purchased 100% of the outstanding shares of AutoClerk, Inc. The acquisition was then accounted for as a business combination, following specific accounting standards.
This acquisition means that AutoClerk, Inc. is now a wholly-owned subsidiary of Best Western International, Inc. As a result, AutoClerk operates under the umbrella of Best Western, providing property management services. This vertical integration could potentially offer Bw Premier Collection franchisees streamlined access to property management systems and possibly integrated services.
The FDD also mentions that the total purchase price was allocated based on the historical financial statements of AutoClerk and management's estimates of fair value. Other intangible assets, such as developed technology and acquired customers, were valued at $1.9 million and $1.5 million, respectively. Any excess consideration paid beyond the fair value of net assets was assigned to goodwill. This financial detail provides insight into how Best Western International, Inc. valued and integrated AutoClerk into its business structure.