Did Management Recruiters sell any assets related to the acquired Temporary Alternatives locations?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
other new accounting pronouncements, issued or effective during the fiscal year, that are expected to have a significant impact on our financial statements and related disclosures.
Note 2 - Acquisitions
Business Combinations
Temporary Alternatives
On January 24, 2022, we completed our acquisition of certain assets of Temporary Alternatives in accordance with the terms of an Asset Purchase Agreement dated January 10, 2022, including three locations in West Texas and New Mexico for $7.0 million, inclusive of a prescribed amount of net working capital. Temporary Alternatives was a staffing division of dmDickason Personnel Services, a family-owned company based in El Paso, TX. The acquisition of Temporary Alternatives expanded our national footprint into West Texas and grow our franchise base.
The fair values of the assets acquired were determined based on information available to us. From the date of acquisition through December 31, 2022, the fair value of assets acquired were adjusted in conjunction with a third-party val
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the document does not explicitly state that Management Recruiters sold any assets related to the acquired Temporary Alternatives locations. The document details the acquisition of Temporary Alternatives on January 24, 2022, for $7.0 million, which included three locations in West Texas and New Mexico. It also mentions adjustments to the fair value of assets acquired, such as decreases in customer lists and accounts receivable, and the recognition of goodwill. However, there is no mention of subsequent sales of assets specifically from the Temporary Alternatives acquisition.
While the document does not confirm any asset sales from Temporary Alternatives, it does describe a similar situation with the acquisition of The Dubin Group. In that case, Management Recruiters divided Dubin into separate businesses and sold certain assets related to one of the acquired locations, with the buyers becoming franchisees. This demonstrates that Management Recruiters has, in some instances, sold assets from acquired companies.
Given this information, a prospective franchisee should directly ask Management Recruiters whether any assets from the Temporary Alternatives acquisition were sold, or are planned to be sold in the future. Understanding the history and potential future plans for these assets could be important for assessing the overall financial health and strategic direction of Management Recruiters.