What was the approximate total consideration paid by Management Recruiters for the acquisition of Recruit Media?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
" in our consolidated statement of income.
Recruit Media
On October 1, 2021 we completed our acquisition of Recruit Media in accordance with the Stock Purchase Agreement dated October 1, 2021 (the "Recruit Agreement"). Pursuant to the Recruit Agreement, we purchased all of the outstanding shares of Recruit Media for approximately $4.4 million, subject to customary representations and warranties. Recruit Media is an IT c
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the company acquired Recruit Media on October 1, 2021. Management Recruiters purchased all outstanding shares of Recruit Media for approximately $4.4 million, subject to customary representations and warranties. Recruit Media is described as an IT company, and its intellectual property is expected to help Management Recruiters improve its platform.
The FDD notes that the Recruit Media transaction was treated as an asset acquisition for accounting purposes because it did not meet the definition of a business. As a result, no pro forma financial information was presented. This means that the acquisition was accounted for by valuing the individual assets acquired rather than as a complete business entity.
For a prospective Management Recruiters franchisee, this acquisition highlights the company's strategy of investing in technology to enhance its service offerings. The $4.4 million acquisition of Recruit Media demonstrates a commitment to improving its platform, which could ultimately benefit franchisees by providing them with better tools and resources to operate their businesses.