What was the total goodwill balance for Management Recruiters as of December 31, 2023?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
are used to determine fair value at the reporting unit level. At December 31, 2023 we had a single reporting unit.
There were no changes to our goodwill in 2023. The table below summarizes our goodwill at December 31, 2023 and at December 31, 2022 (in thousands):
| Goodwill recorded on acquisition of Temporary Alternatives | 375 | |------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the goodwill balance as of December 31, 2023, was $5,870 thousand. Goodwill represents the excess purchase price over the fair value of identifiable assets received during business acquisitions. It is assessed for impairment at least annually. At the end of 2023, Management Recruiters had a single reporting unit for assessing goodwill.
Goodwill can arise from various acquisitions made by Management Recruiters. The FDD lists goodwill recorded on the acquisition of Temporary Alternatives ($375 thousand), Dubin ($200 thousand), Northbound ($500 thousand), and MRI ($4,795 thousand). These figures contribute to the total goodwill balance reported.
For a prospective Management Recruiters franchisee, understanding the goodwill balance and how it's calculated can provide insight into the company's acquisition strategy and financial health. It's also important to note that the goodwill balance did not change during 2023, as stated in the FDD. This stability could indicate consistent valuation and performance of acquired entities.