What was the total cash consideration paid by Management Recruiters for Temporary Alternatives?

According to Management Recruiters' 2024 Franchise Disclosure Document, the company completed the acquisition of Temporary Alternatives, Inc. on January 24, 2022. The acquisition included three locations in west Texas and New Mexico. The total consideration for this acquisition was $7.0 million, which included $336 thousand of adjusted net working capital payable.

Initially, on January 10, 2022, Management Recruiters entered into a definitive agreement with Temporary Alternatives to acquire the locations for $5.25 million, inclusive of a prescribed amount of working capital. However, the final completed acquisition involved a total consideration of $7.0 million.

In a separate table, the FDD also lists cash consideration of $1,480,000 and contingent consideration of $382,029 for a total consideration of $1,862,029 related to customer lists acquired from Temporary Alternatives. This discrepancy suggests that the initial $7.0 million covered the broader acquisition, while the $1,862,029 figure specifically pertains to the value allocated to customer lists as part of the asset valuation. A prospective franchisee should seek clarification from Management Recruiters regarding these different figures to fully understand the financial details of the acquisition and how the assets were valued.