Forum Archive Index - September 2003

["winner69 ." <wwinner69@hotmail.com>]

Snoopy has pointed out - Goodwill of $23.2m was recorded on the acquisition 
of the business of
Eagle Boys New Zealand as a result of purchasing 53 stores and effectively 
closing down Eagle Boys and converting the premeses to Pizza hutt outlets.   
This represents a goodwill figure of  $437,736 per
store acquired.....as compared to $271,621 for the original 36 Pizza Hutts

Why? Simply  2 different transactions at different points in time. RBD paid 
more for the Eagle Boys stores than what they valued the cost of the master 
franchise back when RBD was born.

Obviously RBD thought such a price was worth it but when you look at on a 
store basis $437,000 seems a lot of goodwill for a store that was probably 
selling less than $800,000 at the time.

i wouldn't think RBD look at the 'goodwill' on a per stores basis - just 
treat it as cost of growing share.

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