Note 12 - Acquisitions

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

12. ACQUISITIONS

Heany Industries, LLC

Effective January 2, 2024, Heany Industries, LLC ("Heany"), a Delaware limited liability company an indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of all of the operating assets of Heany Industries, Inc, a New York corporation and specialist in materials engineering solutions for a variety of aerospace, industrial and bio-medical applications pursuant to an Asset Purchase Agreement. The acquired business is strategically important to the Company’s growing aerospace presence and has expanded its offerings and diversified its customer base. The purchase price, subject to customary post-closing adjustments was $6.6 million of cash and inclusive of the real estate on which Heany operates. The Company expects to finalize the purchase price allocation within the allowable measurement period.

Total Consideration	$	6,550,000
Cash	$	250
Accounts Receivable		540,177
Inventory		780,346
Fixed Assets		1,821,615
Prepaid and Other Assets		79,247
Intangible Assets: Customer List & Trademarks		2,102,000
Goodwill		1,330,987
Total Assets Acquired	$	6,654,622
Accounts Payable	$	60,047
Deferred Revenue		44,575
Total Liabilities Assumed		104,622
Total Fair Value	$	6,550,000
Acquisition transaction costs incurred were:	$	215,591

Goodwill has an assigned value of $1.3 million and represents the expected synergies generated by combining the operations of Heany and the Company. The Company has been a long-time customer of Heany and the acquisition allows for a strengthening of the supply chain. The acquired customer relationships have an assigned intangible asset value of $2.05 million, which was determined using an income approach. The residual intangible asset value relates to trademarks.

Sales and Net Income for the Acquired Companies

Sales and net income information for Heany since the respective acquisition date for the three months ended March 31, 2024 and 2023 are provided below.

	Three Months ended				Three Months ended
	March 31, 2024				March 31, 2023
	Sales		Net Income		Sales		Net Income
Acquired Companies:
Heany Industries (acquired January 2, 2024)	$	1,455,531	$	19,469	$	-	$	-
Subtotal Acquired Companies	$	1,455,531	$	19,469	$	-	$	-
All Other Companies		36,984,108		2,977,416		39,484,356		3,391,473
Total	$	38,439,639	$	2,996,885	$	39,484,356	$	3,391,473