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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Schedule of Business Acquisitions

The table below provides a summary of the total consideration and the estimated purchase price allocations made for each of the business acquisitions that became effective during the six months ended June 30, 2020. The "All Others" column includes amounts for the AgencyRM, VibrantUSA, Southern Protective Group and Pendulum business combinations.

(in thousands)	Lanier				Highland				IRP				Rosenthal				TBA/RBA				All Others				Totals
Cash consideration paid	$	24,450			$	6,603			$	26,223			$	75,936			$	76,272			$	22,253			$	231,737
Fair value of contingent earnout consideration	1,628				788				5,521				7,051				7,000				3,200				25,188
Fair value of equity interest	6,119				4,500				7,535				10,147				21,427				2,402				52,130
Deferred payment	—				—				—				—				300				—				300
Total consideration	$	32,197			$	11,891			$	39,279			$	93,134			$	104,999			$	27,855			$	309,355
Cash	$	2,413			$	1,542			$	1,694			$	954			$	—			$	1,022			$	7,625
Premiums, commissions and fees receivable	2,494				5,977				3,229				4,734				8,731				1,598				26,763
Property and equipment	294				—				123				—				—				27				444
Other assets	168				13				22				11				—				16				230
Intangible assets																									—
Purchased customer accounts	6,308				—				8,262				33,670				53,900				4,993				107,133
Distributor relationships	—				6,500				—				—				—				8,100				14,600
Carrier relationships	—				659				—				—				—				—				659
Software	—				—				—				—				—				565				565
Trade names	—				214				—				939				179				57				1,389
Goodwill	23,739				4,228				30,250				56,253				44,264				12,322				171,056
Total assets acquired	35,416				19,133				43,580				96,561				107,074				28,700				330,464
Premiums and producer commissions payable	(2,954		)		(6,374		)		(4,301		)		(3,427		)		(2,075		)		(584		)		(19,715		)
Accrued expenses and other current liabilities	(265		)		(868		)		—				—				—				(261		)		(1,394		)
Total liabilities acquired	(3,219		)		(7,242		)		(4,301		)		(3,427		)		(2,075		)		(845		)		(21,109		)
Net assets acquired	$	32,197			$	11,891			$	39,279			$	93,134			$	104,999			$	27,855			$	309,355
Maximum potential contingent earnout consideration (1)	$	11,000			$	2,450			$	44,399			$	30,843			$	30,147			$	8,689			$	127,528

__________

(1)

IRP has an uncapped earnout. The maximum potential earnout consideration represented has been calculated assuming 50% compound annual revenue growth for three years.

Schedule of Weighted-Average Useful Lives of Intangible Assets Acquired in Business Combinations

The intangible assets acquired in connection with business combinations during the six months ended June 30, 2020 have the following estimated weighted-average lives:

	Weighted-Average Life
Purchased customer accounts	19.1 years
Distributor relationships	20.0 years
Carrier relationships	0.8 years
Software	2.0 years
Trade names	4.3 years

Schedule of Future Amortization Expense for Intangible Assets Acquired in Business Combinations

Future annual estimated amortization expense over the next five years for intangible assets acquired in connection with business combinations during the six months ended June 30, 2020 is as follows:

(in thousands)		Amount
For the remainder of 2020		$	4,780
2021		8,775
2022		8,490
2023		8,313
2024		8,096

Schedule of Pro Forma Information

The following unaudited pro forma consolidated results of operations are provided for illustrative purposes only and have been presented as if the acquisitions of Lanier, Highland, AgencyRM, VibrantUSA, IRP, Southern Protective Group, Pendulum, Rosenthal and TBA/RBA occurred on January 1, 2019. This unaudited pro forma information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisitions had occurred on that date, nor of the results that may be obtained in the future.

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share data)		2020				2019				2020				2019
Pro forma results:
Revenues		$	55,821			$	50,809			$	133,905			$	105,645
Net income (loss)		(8,178		)		(4,115		)		6,144				8,656
Net income (loss) attributable to BRP Group, Inc.		(2,845		)						2,030
Basic earnings (loss) per share		$	(0.14	)						$	0.10
Diluted earnings (loss) per share		$	(0.14	)						$	0.10
Weighted-average shares of Class A common stock outstanding - basic		20,426								19,983
Weighted-average shares of Class A common stock outstanding - diluted		20,426								20,344

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

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