CBIZ plans to acquire the non-attest business of New York-based Marcum this fall in a blockbuster deal involving two of the largest business advisory firms in the nation.
CBIZ, a Cleveland-based public company that offers financial, insurance and advisory services, is ranked No. 11, and Marcum is ranked No. 13, according to INSIDE Public Accounting’s latest listing. Together, the firm will rank No. 7 with 10,000 employees, 135,000 clients and about $2.8 billion in combined annual revenue.
The attest business of Marcum will be acquired by Mayer Hoffman McCann, the national independent CPA firm with which CBIZ has had an administrative service agreement for over 25 years.
The cash-and-stock transaction is valued at approximately $2.3 billion. It is expected that approximately half of the transaction consideration will be paid in cash and the remainder shares of CBIZ common stock, CBIZ announced. The deal should close in the fourth quarter, subject to stockholder approval, the approval of Marcum’s partners and other customary closing conditions.
“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,” said Marcum chairman and CEO Jeffrey Weiner in a statement to clients. “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.”
According to Jerry Grisko, president and CEO of CBIZ, “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 also noted that the combination will allow for innovation using the latest technologies, such as business intelligence, workflow reengineering and machine learning. “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,” he concluded.
Allan D. Koltin, CEO of Koltin Consulting Group, who has advised both firms over the past two decades but wasn’t involved directly in the deal commented, “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 added, “Not only will this create the seventh-largest CPA and advisory firm in the country, it will also increase the number of PE firms and related investment groups entering the accounting profession. The accounting profession has been around for 137 years, but it’s never had a day like today!”
More information about this transaction can be found here: https://www.cbiz.com/stronger-together. Also, CBIZ announced its second-quarter financial results today here: https://cbiz.gcs-web.com/investor-overview.
