What was the total consideration for the Management Recruiters transaction, including cash consideration, liabilities assumed, and transaction costs?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 21: FINANCIAL STATEMENTS]
| Cash consideration | 3,283,196 |
|---|---|
| Liabilities assumed | 1,044,174 |
| Transaction costs | 22,630 |
| Total consideration | $ 4,350,000 |
| Purchased software | 3,200,089 |
| Domain name | 2,226,149 |
| Deferred tax liability | (1,076,238) |
| Purchase price allocation | $ 4,350,000 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, one instance lists the total consideration for a transaction as $4,350,000. This total includes cash consideration of $3,283,196, liabilities assumed of $1,044,174, and transaction costs of $22,630. This information is part of the financial statements included in the FDD.
For a prospective Management Recruiters franchisee, understanding these figures provides insight into how the company values and accounts for business acquisitions. It demonstrates the types of costs Management Recruiters considers when acquiring other companies, which can be helpful in assessing the financial health and strategic direction of the franchisor.
It is important to note that this data represents a specific transaction and may not be representative of all acquisitions made by Management Recruiters. Reviewing the notes to the financial statements and consulting with a financial advisor can provide a more comprehensive understanding of the company's acquisition strategy and its potential impact on franchisees.