To whom did Management Recruiters agree to sell the Dental Power assets, and on what date did this agreement occur?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2 | |
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| Customer lists | $ 1,862 |
The contingent consideration consists of estimated future payments based on the achievement of performance metrics over the following 3 years.
The asset acquired related to the operations of the acquiree have not been sold and as of December 31, 2022 and are classified as held-for-sale. The operating results are reported as "Income from discontinued operations, net of tax." On March 1, 2023, we agreed to sell the assets we acquired in the Dental Power acquisition to an MRI franchisee, who will continue to operate the business as part of their franchise. The sale agreement calls for proceeds of $2 million payable over 5 years with a market rate of interest. We expe
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, on March 1, 2023, Management Recruiters agreed to sell the assets acquired in the Dental Power acquisition to an MRI franchisee. The franchisee will continue to operate the business as part of their franchise.
The sale agreement specifies proceeds of $2 million payable over 5 years, which includes a market rate of interest. Management Recruiters anticipated recognizing an estimated gain of approximately $340,000 in the first quarter of 2023 upon completion of the transaction.
Prior to the sale, the assets acquired in the Dental Power Agreement were company-owned as of December 31, 2022. Management Recruiters had initially used the Dental Power platform to build a customer base in the dental sector to increase revenue opportunities under the HireQuest Health brand. After acquiring MRI in December 2022, Management Recruiters determined there were natural buyers within the MRI Network and reclassified Dental Power as held-for-sale.