During the nine months ended September 30, 2020, the Company expanded its network of its real estate sales and financing professionals and provided further diversification to its real estate brokerage and financing serices

 

The Company completed an acquisition of two businesses that were accounted for as business combinations and the results have been included in the condensed consolidated financial statements beginning on the acquisition dates. Aggregate terms of these acquisitions included: (i) cash paid at closing of approximately $11.8 million, net of cash received, (ii) the fair value of contingent consideration of $1.8 million with payments conditioned upon achieving certain financial metrics, and (iii) the fair value of deferred consideration of $3.9 million with the only remaining condition on such payments being the passage of time. Contingent consideration and deferred consideration are included in accounts payable and other liabilities and other liabilities captions in the condensed consolidated balance sheets. See Note 10 – “Fair Value Measurements” for additional information on contingent and deferred consideration.

Based on preliminary purchase price allocations, $8.3 million was allocated to the fair values of intangible assets with the remainder of $9.2 million allocated to goodwill. The Company recorded acquisition related costs of $480,000 and $199,000 for the three months ended September 30, 2020 and 2019, respectively, and $1.5 million and $339,000 for the nine months ended September 30, 2020 and 2019, respectively. These amounts are included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income.

tax-deductible

Goodwill and intangible assets, net consisted of the following (in thousands):

 

 

The changes in the carrying amount of goodwill consisted of the following (in thousands):

 

Estimated amortization expense for intangible assets by year for the next five years and thereafter consisted of the following (in thousands):

 

 

The Company evaluates goodwill for impairment annually in the fourth quarter. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing which indicate that it is more likely than not an impairment loss has occurred. The Company evaluates its intangible assets that have finite useful lives whenever an event or change in circumstances indicates that the carrying value of the asset may not be recoverable.