How was the total purchase price for AutoClerk allocated by Bw Premier Collection's parent company?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
cordance 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, the parent company of Bw Premier Collection allocated the total purchase price for AutoClerk based on two key factors. First, they considered the amounts reported in AutoClerk's historical financial statements for any assets already recorded at fair value, adhering to AutoClerk's existing accounting policies. Second, they relied on management's estimates of fair value, especially for intangible assets.
To determine the estimated fair value of these other intangible assets, Bw Premier Collection's parent company enlisted the help of third-party valuation specialists. This external valuation process ensured an objective assessment of assets like developed technology and acquired customers. The FDD specifies that the values assigned to developed technology and acquired customers were $1.9 million and $1.5 million, respectively.
Finally, if the total purchase consideration paid by Bw Premier Collection's parent company exceeded the fair value of the net assets acquired from AutoClerk, the excess amount was allocated to goodwill. This accounting treatment reflects the intangible value and future potential that the parent company attributed to the AutoClerk acquisition beyond its identifiable assets.