What company did Management Recruiters acquire assets from on January 24, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ber 4, 2023 we completed our acquisition of TEC Staffing Services ("TEC") to acquire ten locations in Arkansas for $9.8 million. TEC has been a premier provider of staffing services to the employers and workers in Northwest and Central Arkansas for over 40 years.
On January 24, 2022 we completed our acquisition of Temporary Alternatives, Inc. ("Temporary Alternatives") to ac
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, on January 24, 2022, Management Recruiters acquired assets from Temporary Alternatives, Inc. Temporary Alternatives was a staffing division of dmDickason Personnel Services, a family-owned company based in El Paso, TX. The acquisition included three locations in West Texas and New Mexico for $7.0 million, inclusive of a prescribed amount of net working capital.
This acquisition expanded Management Recruiters' national footprint into West Texas and aimed to grow their franchise base. The fair values of the acquired assets were determined based on available information and were later adjusted following a third-party valuation and net working capital reconciliation. These adjustments included a decrease in customer lists of approximately $375,000, a decrease in accounts receivable of approximately $3,000, and the recognition of approximately $375,000 of goodwill.
For a prospective franchisee, this acquisition demonstrates Management Recruiters' strategy of growth through acquisitions and expansion into new geographic areas. It also highlights the complexities involved in valuing and integrating acquired assets, as evidenced by the post-acquisition adjustments. Understanding these types of transactions can be beneficial for franchisees as it provides insight into the company's overall growth strategy and financial management practices.