What was the amount of cash consideration in the Management Recruiters financial statements?

According to Management Recruiters's 2024 Franchise Disclosure Document, the financial statements include information on cash consideration related to acquisitions. One table shows cash consideration of $1,480,000, contingent consideration of $382,029, and total consideration of $1,862,029, with customer lists also valued at $1,862,029. Another table details cash consideration of $13,000, contingent consideration of $60, net working capital payable of $223, and total consideration of $13,283. This second table also lists franchise relationships at $5,640, trade name at $2,180, royalty receivable at $575, current assets at $581, goodwill at $4,795, current liabilities assumed at ($488), and a purchase price allocation of $13,283.

These figures represent the cash component of the purchase price for various acquisitions made by Management Recruiters. For a prospective franchisee, understanding these cash considerations is crucial because it provides insight into how Management Recruiters values and structures its acquisitions, which can reflect on the overall financial strategy and health of the company. The presence of contingent consideration also indicates that some portion of the acquisition cost is tied to future performance, aligning the interests of the acquired entity with Management Recruiters.

It is important to note that these figures are specific to the acquisitions listed and may not be representative of all transactions undertaken by Management Recruiters. A potential franchisee should review the notes to the financial statements for a more detailed understanding of these acquisitions and how they impact the overall financial position of the company. Additionally, understanding the purchase price allocation helps in assessing the value of different assets acquired, such as franchise relationships and trade names, which are directly relevant to the franchise system.