What acquisitions contributed to the goodwill balance of Management Recruiters as of December 31, 2023?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
are used to determine fair value at the reporting unit level. At December 31, 2023 we had a single reporting unit.
There were no changes to our goodwill in 2023. The table below summarizes our goodwill at December 31, 2023 and at December 31, 2022 (in thousands):
| Goodwill recorded on acquisition of Temporary Alternatives | 375 | |------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the goodwill balance as of December 31, 2023, is attributed to several acquisitions. The acquisitions that contributed to the goodwill balance are Temporary Alternatives, Dubin, Northbound, and MRI. The goodwill balance at December 31, 2023 was $5,870.
The goodwill recorded on the acquisition of Temporary Alternatives is $375. The goodwill recorded on the acquisition of Dubin is $200. The goodwill recorded on the acquisition of Northbound is $500. The goodwill recorded on the acquisition of MRI is $4,795.
Goodwill, as described in the FDD, represents the excess purchase price over the fair value of identifiable assets received from business combinations. It reflects the expected synergies with Management Recruiters' existing business, the acquired assembled workforce, potential new customers, and future cash flows resulting from these acquisitions. Goodwill is assessed for impairment at least annually, or when circumstances suggest it may be impaired, such as significant changes in the business climate or operating performance.