How CBIZ’s $2.3bn acquisition of Marcum is set to transform the accounting world

CBIZ, Inc., a prominent provider of financial, insurance, and advisory services, has announced a major acquisition that will reshape the landscape of accounting services in the United States. The company has entered into a definitive agreement to acquire the non-attest business of Marcum, LLP, in a cash-and-stock transaction valued at approximately $2.3 billion. This strategic move will position CBIZ as the seventh-largest accounting services provider in the country, with projected annual revenue reaching around $2.8 billion.

Key Transaction Details

Under the agreement, CBIZ will acquire Marcum’s non-attest business, while the attest business will be acquired by Mayer Hoffman McCann P.C., a CPA firm with whom CBIZ has had a long-standing administrative service agreement. The transaction is expected to be financed with approximately half in cash and the remainder in CBIZ common stock.

Marcum, founded in 1951 and headquartered in New York City, operates 43 offices across the U.S. and serves over 35,000 clients. With annual revenue of approximately $1.2 billion and a team of more than 3,500 professionals, Marcum ranks as the 13th-largest accounting firm in the nation. The firm offers a broad range of services, including traditional tax, attest, accounting, advisory, technology solutions, and executive search and staffing services.

Strategic Benefits of the Acquisition

The acquisition is expected to deliver numerous benefits for CBIZ and its stakeholders. It will solidify CBIZ’s position as a leading provider of professional services to the middle market and enhance its growth strategy. The combined entity will offer an unmatched breadth of services and depth of expertise, driving innovation and technological advancements.

CBIZ anticipates that the transaction will enhance its ability to attract and retain top talent, improve client experience with innovative solutions, and expand its industry presence. The company projects that the acquisition will be accretive in 2025, contributing approximately 10% to adjusted earnings per share.

Statements from Leadership

Jerry Grisko, President and Chief Executive Officer of CBIZ, highlighted the significance of the transaction, noting that it marks the most substantial acquisition in the company’s history. Grisko emphasized the opportunity to offer a wider array of high-value solutions and strengthen CBIZ’s presence in key markets.

Jeffrey Weiner, Chairman and Chief Executive Officer of Marcum, echoed these sentiments, expressing excitement about the merger and its potential to bring diversified services and greater subject matter expertise to clients. Weiner stressed the alignment of CBIZ and Marcum’s models and their shared commitment to delivering innovative and personalized services.

Transaction Timeline and Advisors

The deal is expected to close in the fourth quarter of 2024, subject to approval by CBIZ stockholders, Marcum’s partners, and other customary closing conditions. CBIZ’s financial advisor for the transaction is Perella Weinberg Partners, with BakerHostetler serving as its legal advisor. Deutsche Bank is advising Marcum, and Dechert LLP is its legal advisor.

About CBIZ and Marcum

CBIZ, Inc. provides a wide range of financial, insurance, and advisory services across the U.S., including accounting, tax, risk advisory, and insurance services. Marcum LLP is renowned for its expertise in serving entrepreneurial companies and high-net-worth individuals, offering comprehensive services in accounting, advisory, technology, and executive search.