CBIZ and Marcum Merge in $2.8 Billion Deal to Form a Top 7 Business Advisory Firm

CBIZ, a prominent Cleveland-based public company providing financial, insurance, and advisory services, announced its plans to acquire the non-attest business of New York-based Marcum LLP in a highly significant deal set for the fall of 2024. This merger will bring together two of the largest business advisory firms in the United States, creating a powerhouse in the industry.

CBIZ, currently ranked No. 11, and Marcum, ranked No. 13 according to INSIDE Public Accounting's latest listing, will combine their strengths to form the seventh-largest business advisory firm in the country. The newly merged entity will boast an impressive workforce of 10,000 employees, serve 135,000 clients, and generate approximately $2.8 billion in combined annual revenue.

As part of the transaction, Marcum’s attest business will be acquired by Mayer Hoffman McCann P.C., a national independent CPA firm that has maintained an administrative service agreement with CBIZ for over 25 years. This move will allow both firms to focus on their core strengths while maintaining their leadership positions in the industry.

The deal, valued at approximately $2.3 billion, will be executed through a cash-and-stock transaction. CBIZ has announced that around half of the consideration will be paid in cash, with the remainder in shares of CBIZ common stock. The transaction is expected to close in the fourth quarter of 2024, pending approval from stockholders, Marcum's partners, and the fulfillment of other customary closing conditions.

Jeffrey Weiner, Marcum's chairman and CEO, emphasized the strategic benefits of the acquisition, stating, "This strategic acquisition presents an incredible opportunity for CBIZ and Marcum to bring together the best talent in the industry to offer our clients an exceptional breadth of services and depth of expertise. Our combined force will deliver exceptional accounting, tax, advisory, business, and insurance services to middle-market clients and attract and retain the best and brightest talent."

CBIZ President and CEO Jerry Grisko echoed this sentiment, noting, "This transaction enables CBIZ to strengthen our presence in key markets, continue to attract and retain top talent, and innovate through technology. We are excited about our future together and the opportunities it will provide our people, the solutions we will bring to our clients, and the value we expect it will create for shareholders."

Weiner further highlighted the potential for innovation through the combination of the two firms, particularly in leveraging advanced technologies such as business intelligence, workflow reengineering, and machine learning. He added, "The future has never been more exciting because of the growth opportunities it will unleash for our people and the solutions it will provide our clients."

Allan D. Koltin, CEO of Koltin Consulting Group and a long-time advisor to both firms, remarked on the groundbreaking nature of the deal. "This deal is groundbreaking and puts a big exclamation mark on whether or not non-CPA firm ownership can work in the accounting profession," Koltin said. He further noted that the merger would not only create the seventh-largest CPA and advisory firm in the country but also likely increase the involvement of private equity firms and related investment groups in the accounting industry. "The accounting profession has been around for 137 years, but it’s never had a day like today," he concluded.

For more detailed information about this transaction, visit CBIZ's official announcement.