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CBIZ Completes Acquisition of Marcum, Becoming U.S. Leader in Full-Service Professional Services
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Subscribe04 NOV 2024 / M&A UPDATES
Cleveland-based firm CBIZ has acquired New York-based Marcum LLP in a $2.3 billion deal, making it the largest full-service professional services provider in the U.S. for middle-market businesses. The merger, predicted to increase CBIZ's adjusted earnings per share by approximately 10% in 2025, expands the company's service offerings and capabilities, positioning it for accelerated growth and increased investment in technology.
CBIZ, a Cleveland-based firm with FY23 net revenue of $1.35 billion, has successfully completed its acquisition of Marcum LLP, a New York-based firm with FY23 net revenue of $1.32 billion. The deal, valued at $2.3 billion, positions CBIZ as the largest full-service professional services advisor in the U.S. offering a comprehensive range of services including accounting, tax, advisory, benefits, insurance, and technology services, primarily targeting middle-market businesses.
A New Chapter for CBIZ:
The acquisition enhances CBIZ's capabilities and accelerates its growth strategy. With this merger, the combined company now boasts over 10,000 team members, expanding its service offerings and expertise to provide innovative, data-driven solutions for its clients. CBIZ president and CEO, Jerry Grisko, expressed excitement about the new opportunities created by this transaction:
“We are pleased to have successfully closed the acquisition of Marcum, which represents a major milestone and new chapter for CBIZ… We are excited to welcome the Marcum team to CBIZ and look forward to a bright future together.”
Strengthening Market Position and Service Capabilities:
The merger solidifies CBIZ's position as the largest professional services provider of its kind in the U.S. for middle-market businesses. With the combination of CBIZ’s and Marcum’s capabilities, the firm now offers unmatched service breadth and expertise, enhancing its ability to provide actionable advice, new products, and innovative solutions to its clients
Transaction Structure and Financial Impact:
The acquisition is structured as a cash-and-stock transaction with an expected combined annualized revenue of approximately $2.8 billion. The attest business of Marcum was acquired by CBIZ CPAs, a national independent CPA firm, which has had an administrative service agreement with CBIZ for over 25 years.
CBIZ anticipates that the transaction will be accretive to its adjusted earnings per share by approximately 10% in 2025. The merger will also enable CBIZ to increase its investment in technology to drive efficiency, innovation, and performance across the firm.
Key Transaction Benefits:
The acquisition of Marcum brings several strategic benefits to CBIZ:
• Enhanced market position as the premier full-service advisor to the middle market
• Accelerated growth strategy, positioning CBIZ as an acquirer of choice in the industry
• Increased industry expertise and access to new sectors
• Expanded technology capabilities to support data-driven insights and innovation
• Attracting top talent with expanded learning, development, and career growth opportunities
As CBIZ looks to the future, the firm is well-positioned to continue growing its presence in key industries, providing unmatched value to its clients and shareholders.
Until next time…
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