Acquisitions, Goodwill and Other Intangible Assets
|12 Months Ended
Dec. 31, 2019
|Business Combinations [Abstract]
|Acquisitions, Goodwill and Other Intangible Assets
During 2019, the Company expanded its network of its real estate sales professionals and provided further diversification to its real estate brokerage services.
In the fourth quarter, the Company completed an acquisition of one business that was accounted for as a business combination and the results have been included in the consolidated financial statements beginning on the acquisition date. The acquisition included aggregate consideration of $8.5 million and included: (i) cash paid at closing and (ii) the fair value of contingent consideration and deferred payments using a probability-weighted, discounted cash flow estimate on achieving certain financial metrics or service and time requirements. Contingent consideration and deferred payments are included in accounts payable and other liabilities and deferred rent and other liabilities in the consolidated balance sheets. See Note 10 – “Fair Value Measurements” for additional information on contingent consideration.
The goodwill recorded as part of the acquisition primarily arose from the acquired assembled workforce and commercial
sales platforms.The Company expects all of the goodwill to be tax deductible, with the
tax-deductibleamount of goodwill related to the contingent consideration to be determined once the cash payments are made to settle the contingent consideration. The goodwill resulting from the acquisition is allocated to the Company’s one reporting unit.
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 for the next five years and thereafter consisted of the following (in thousands):