What was the total cash paid, net of cash acquired, in relation to Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
acquisition date. The valuation methodology includes assumptions and judgments regarding the discount rate, estimated probability of achieving the milestones, and expected timing of payments, which are primarily Level Three assumptions. Total purchase consideration was determined as follows:
| Cash paid, net of cash acquired | $ 148 |
|---|---|
| Cash acquired | 3 |
| Fair value of contingent consideration | 108 |
| Total purchase consideration | $ 259 |
The acquisition includes management, franchise, and license agreements for both operating and additional hotels that are expected to open in the future and the affiliated trade names.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, there are three instances of cash paid net of cash acquired. One instance reflects $148 with cash acquired totaling $3, resulting in a total purchase consideration of $259, which includes a fair value of contingent consideration of $108. Another instance reflects cash paid net of cash acquired totaling $50, with cash acquired totaling $22, resulting in a total purchase consideration of $72. The last instance reflects cash paid net of cash acquired totaling $372, with cash acquired totaling $2, a fair value of deferred consideration of $58, and a fair value of contingent consideration of $33, resulting in a total purchase consideration of $465.
These figures represent the net cash outflow for Caption By Hyatt's acquisitions, considering any cash balances obtained in the transactions. For a prospective franchisee, understanding these amounts can provide insight into the scale and financial structure of Caption By Hyatt's growth strategy through acquisitions. It demonstrates the brand's approach to expanding its market presence and service offerings.
It is important to note that these figures are specific to the financial year presented in the FDD and may not be representative of future acquisition activities. A potential franchisee should consider these figures in the context of Caption By Hyatt's overall financial health and strategic goals, as outlined in other sections of the FDD and through discussions with the franchisor.