Description of Business and Basis of Presentation |
12 Months Ended | ||
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Dec. 31, 2020 | |||
| Accounting Policies [Abstract] | |||
| Description of Business and Basis of Presentation |
Description of Business Marcus & Millichap, Inc., (the “Company”, “Marcus & Millichap”, or “MMI”), a Delaware corporation, is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2020, MMI operates 84 offices in the United States and Canada through its wholly-owned subsidiaries, including the operations of Marcus & Millichap Capital Corporation. Reorganization and Initial Public Offering MMI was formed in June 2013 in preparation for Marcus & Millichap Company (“MMC”) to
spin-off its majority owned subsidiary, Marcus & Millichap Real Estate Investment Services, Inc. (“MMREIS”). Prior to the initial public offering (“IPO”) of MMI, all of the preferred and common stockholders of MMREIS (including MMC and employees of MMREIS) contributed all of their outstanding shares to MMI, in exchange for new MMI common stock. As a result, MMREIS became a wholly-owned subsidiary of MMI. Thereafter, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness of MMC. MMI completed its IPO in . Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Considerations Related to the COVID-19 Pandemic The COVID-19 pandemic and resultant shutdown of economic activity across much of the world has led to sharp increases in unemployment, volatility in debt and equity markets and businesses instituting cost-cutting and capital-preservation measures. There has been a significant impact on commercial real estate markets in the United States and Canada that started at the end of first quarter 2020 and continued through the second quarter of 2020 as many property owners have put transactions on hold, driving significantly lower sales volumes. During the second half of the 2020, the Company experienced improvement in transaction activity. The Company could experience other potential impacts as a result of the COVID-19 pandemic. Actual results may differ from the Company’s current estimates as there is considerable uncertainty around the scope and duration of the COVID-19 pandemic, and, as a result, the extent of the impact of COVID-19 on the Company’s operational and financial performance is uncertain and cannot be predicted. The Company expects the effects of the COVID-19 pandemic to continue to impact its financial position, results of operations, and cash flows for at least the first quarter of 2021. See Note 3 – “Property and Equipment, Net”, Note 6 – “Acquisitions, Goodwill and Other Intangible Assets”, Note 10 – “Fair Value Measurements” and Note 16 – “Commitments and Contingencies”
COVID-19. Reclassifications Certain prior-period amounts in the consolidated balance sheet and statement of cash flows, Note 7 – “Selected Balance Sheet Data” and Note 10 – “Fair Value Measurements”, have been reclassified to conform to the current period presentation. These changes had no impact on the previously reported consolidated results of operations. |