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What was the cash consideration involved in the Management Recruiters purchase price allocation?

Management_Recruiters Franchise · 2024 FDD

Answer from 2024 FDD Document

Cash consideration $ 13,000
Contingent consideration 60
Net working capital payable 223
Total consideration $ 13,283
Cash consideration $ 3,283
Liabilities assumed 1,044
Transaction costs 23
Total consideration $ 4,350
Cash consideration $ 2,100
Note payable & net working capital payable 362
Total consideration $ 2,462
Cash consideration $ 11,123
Franchise agreements 10,886
Notes receivable 237
Purchase price allocation $ 11,123
Cash consideration $ 9,600
Net working capital payable 328
Note payable 1,500
Total consideration $ 11,428
Cash consideration $ 6,707
Net working capital payable 336
Total consideration $ 7,043

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)

What This Means (2024 FDD)

According to Management Recruiters's 2024 Franchise Disclosure Document, several instances of cash considerations are noted in purchase price allocations. In one instance, the cash consideration was $13,000, with a contingent consideration of $60 and a net working capital payable of $223, resulting in a total consideration of $13,283. In another instance, the cash consideration was $3,283, with liabilities assumed at $1,044 and transaction costs of $23, leading to a total consideration of $4,350. Yet another instance shows a cash consideration of $2,100, combined with a note payable and net working capital payable of $362, totaling $2,462.

Additionally, the document indicates a cash consideration of $11,123 related to franchise agreements valued at $10,886 and notes receivable at $237. In another scenario, the cash consideration was $9,600, accompanied by a net working capital payable of $328 and a note payable of $1,500, resulting in a total consideration of $11,428. Finally, in another instance, the cash consideration was $6,707, with a net working capital payable of $336, making the total consideration $7,043.

These figures represent different acquisitions or financial scenarios reflected in Management Recruiters' financial statements. It is important to note that these cash considerations are components of larger purchase price allocations, which include various assets, liabilities, and intangible items. A prospective franchisee should understand the context of each transaction to fully grasp its implications. Reviewing the complete financial statements and related notes is essential for a comprehensive understanding.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.