What was the goodwill balance at Management Recruiters on December 31, 2023?

According to Management Recruiters' 2024 Franchise Disclosure Document, the goodwill balance as of December 31, 2023, was $5,870,000. Goodwill, in this context, represents the excess of the purchase price over the fair value of identifiable assets acquired through business combinations. This figure is significant as it reflects the intangible value Management Recruiters has accumulated through acquisitions.

The FDD also provides a breakdown of how this goodwill was accumulated. It includes goodwill recorded on the acquisition of Temporary Alternatives ($375,000), Dubin ($200,000), Northbound ($500,000), and MRI ($4,795,000). These figures show the specific amounts of goodwill recognized when Management Recruiters acquired these various entities.

It is important to note that Management Recruiters assesses the value of its goodwill at least annually for impairment. This means that the company evaluates whether the fair value of the acquired businesses has declined. If impairment is detected, Management Recruiters would be required to write down the value of goodwill, which could impact the company's financial statements. The FDD states that there were no changes to the goodwill in 2023, indicating that no impairment was recognized during that year.