What was the amount of cash consideration involved in the purchase price allocation for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 13,000 |
|---|---|
| Contingent consideration | 60 |
| Net working capital payable | 223 |
| Total consideration | $ 13,283 |
| Franchise relationships | $ 5,640 |
| Trade name | 2,180 |
| Royalty receivable | 575 |
| Current assets | 581 |
| Goodwill | 4,795 |
| Current liabilities assumed | (488) |
| Purchase price allocation | $ 13,283 |
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 6,707 |
|---|---|
| Net working capital payable | 336 |
| Total consideration | $ 7,043 |
| Customer lists | $ 4,000 |
| Accounts receivable | 2,668 |
| Goodwill | 375 |
| Purchase price allocation | $ 7,043 |
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 9,600 |
|---|---|
| Net working capital payable | 328 |
| Note payable | 1,500 |
| Total consideration | $ 11,428 |
| Customer relationships | $ 7,700 |
| Trade name | 1,400 |
| Accounts receivable | 3,386 |
| Other current assets | 94 |
| Goodwill | 500 |
| Current liabilities assumed | (1,652) |
| Purchase price allocation | $ 11,428 |
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 3,283 |
|---|---|
| Liabilities assumed | 1,044 |
| Transaction costs | 23 |
| Total consideration | $ 4,350 |
| Purchased software | 3,200 |
| Domain name | 2,226 |
| Deferred tax liability | (1,076) |
| Purchase price allocation | $ 4,350 |
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 2,100 |
|---|---|
| Note payable & net working capital payable | 362 |
| Total consideration | $ 2,462 |
| Customer relationships | $ 1,600 |
| Customer lists | 200 |
| Accounts receivable | 462 |
| Goodwill | 200 |
| Purchase price allocation | $ 2,462 |
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | $ 11,123 |
|---|---|
| Franchise agreements | 10,886 |
| Notes receivable | 237 |
| Purchase price allocation | $ 11,123 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, several instances of cash consideration are detailed in relation to purchase price allocations. One instance shows cash consideration of $13,000, with a contingent consideration of $60 and net working capital payable of $223, resulting in a total consideration of $13,283. In this allocation, franchise relationships are valued at $5,640, the trade name at $2,180, royalty receivable at $575, current assets at $581, and goodwill at $4,795, with current liabilities assumed at ($488).
Another table shows cash consideration of $6,707, with net working capital payable of $336, resulting in a total consideration of $7,043. The purchase price allocation includes customer lists at $4,000, accounts receivable at $2,668, and goodwill at $375. A further instance details cash consideration of $9,600, with net working capital payable of $328 and a note payable of $1,500, leading to a total consideration of $11,428. This allocation includes customer relationships at $7,700, the trade name at $1,400, accounts receivable at $3,386, other current assets at $94, goodwill at $500, and current liabilities assumed at ($1,652).
Additionally, one table shows cash consideration of $3,283, liabilities assumed of $1,044, and transaction costs of $23, resulting in a total consideration of $4,350. The purchase price allocation includes purchased software at $3,200, a domain name at $2,226, and a deferred tax liability at ($1,076). Another instance shows cash consideration of $2,100, with a note payable and net working capital payable of $362, resulting in a total consideration of $2,462. The allocation includes customer relationships at $1,600, customer lists at $200, accounts receivable at $462, and goodwill at $200. Finally, one table shows cash consideration of $11,123, with franchise agreements at $10,886 and notes receivable at $237.