Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 37

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 8
Chunk 37
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 to pay contingent consideration of up to $21.1 million in fiscal 2028 based on the earnings of the acquired entity during the three-year period following the acquisition provided the entity meets a certain earnings objective over the same three-year period.  As of January 31, 2025, the estimated fair value of the contingent consideration was $11.5 million.As part of the agreement to acquire 96% of the stock of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of up to $27.4 million in fiscal 2027 based on the earnings of the acquired entity during fiscal years 2025 and 2026.  As of January 31, 2025, the estimated fair value of the contingent consideration was $22.7 million.As part of the agreement to acquire 74% of the membership interests of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of $14.1 million in fiscal 2027 should the acquired entity meet a certain earnings objective during the five-year period following the acquisition.  As of January 31, 2025, the estimated fair value of the contingent consideration was $2.4 million.As part of the agreement to acquire 89.99% of the equity interests of a subsidiary by the ETG in fiscal 2020, the Company paid contingent consideration of CAD $11.7 million, or $8.1 million, in January 2025 as the acquired entity met certain earnings objectives during fiscal 2023 and 2024.    The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of January 31, 2025 ($ in thousands):Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 1-31-2025$11,457Compound annual revenue growth rate5% - 22%17%Discount rate7.6% - 7.6%7.6%7-18-202222,697Compound annual revenue growth rate5% - 10%9%Discount rate7.6% - 7.6%7.6%3-17-20222,360Compound annual revenue growth rate1% - 5%4%Discount rate8.1% - 8.1%8.1%(1)    Unobservable inputs were weighted by the