Note 15 - Acquisitions

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

15.  ACQUISITIONS

Heany Industries, LLC

Effective  January 2, 2024, Heany Industries, LLC, a Delaware limited liability company and 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 the Company's offerings and diversified its customer base. The purchase price was $6.6 million of cash and inclusive of the real estate on which Heany operates. 

The Company has substantially completed the purchase price allocation, reflecting estimates of the fair values of assets acquired and liabilities assumed as of the acquisition date. While we may record minor adjustments as additional information becomes available within the measurement period, we do not expect any material changes to the purchase price allocation.

Total Consideration	$	6,550,000
Cash		250
Accounts Receivable		540,177
Inventory		737,032
Fixed Assets		2,234,200
Prepaid and Other Assets		79,247
Intangible Assets: Customer List & Trademarks		1,985,000
Goodwill		1,078,716
Total Assets Acquired	$	6,654,622
Accounts Payable	$	60,047
Accrued Expense		44,575
Total Liabilities Assumed	$	104,622
Total Fair Value	$	6,550,000
Acquisition transaction costs expensed as incurred were:	$	226,701

Goodwill

Goodwill has an assigned value of $1.1 million and represents the expected synergies generated by combining the operations of Heany and the Company. The Company was a long-time customer of Heany and the acquisition allows for a strengthening of the Company's supply chain. The acquired customer relationships have an assigned intangible asset value of $1,934,000, which was determined using an income approach and will be amortized on a straight-line basis over 15 years. The residual intangible asset value of $51,000 relates to trademarks.

Advanced Industrial Coatings, LLC

Effective  August 30, 2024, Advanced Industrial Coatings LLC, a Delaware limited liability company and indirect wholly-owned subsidiary of Crawford United Corporation, completed the acquisition of substantially all the assets of Advanced Industrial Coatings, Inc., a California corporation and specialist in fluoropolymers and other high-performance coatings solutions for the aerospace, semiconductor, medical, energy and other industrial sectors, pursuant to an Asset Purchase Agreement. The acquired business is strategically important to the Company’s growing aerospace presence and has expanded the Company's offerings and diversified its customer base. 

The Company has substantially completed the purchase price allocation, reflecting estimates of the fair values of assets acquired and liabilities assumed as of the acquisition date. While we may record minor adjustments as additional information becomes available within the measurement period, we do not expect any material changes to the purchase price allocation.

Total Consideration	$	4,360,985
Accounts Receivable		752,848
Inventory		180,825
Fixed Assets		1,096,717
Prepaid and Other Assets		23,224
Intangible Assets: Customer List		1,400,000
Goodwill		1,015,939
Total Assets Acquired	$	4,469,553
Accounts Payable	$	93,113
Accrued Expense		15,455
Total Liabilities Assumed	$	108,568
Total Fair Value		4,360,985
Acquisition transaction costs expensed as incurred were:	$	157,855

Goodwill and Intangible Assets

Goodwill has an assigned value of $1.0 million and represents the expected synergies generated by combining the operations of AIC and the Company. The acquired customer relationships have an assigned intangible asset value of $1.4 million, which was determined using an income approach and will be amortized on a straight-line based over 15 years. 

Sales and Net Income for the Acquired Companies

Sales and net income information for Heany and AIC since their respective acquisition dates for the years ended  December 31, 2024 and 2023 are provided below.

	Year ended				Year ended
	December 31, 2024				December 31, 2023
	Sales		Net Income		Sales		Net Income
Acquired Companies:
Heany Industries (acquired January 2, 2024)	$	6,036,355	$	449,497	$	-	$	-
Advanced Industrial Coatings (acquired August 30, 2024)		1,566,029		130,897		-		-
Subtotal Acquired Companies		7,602,384		580,394		-		-
All Other Companies		142,595,900		13,017,573		143,885,934		13,294,793
Total	$	150,198,284	$	13,597,967	$	143,885,934	$	13,294,793