CBIZ to acquire Marcum as accounting firms chart new growth paths
Writer: Ryan Gandolfo
2 min read July 2024 — Accounting services provider CBIZ announced an agreement to acquire Marcum for a cash-and-stock transaction valued at $2.3 billion on Wednesday, marking a major event for an accounting industry that has been consolidating in recent years.
According to an official press release, the deal will make CBIZ the seventh largest accounting services provider in the United States, with $2.8 billion annual revenue. The Cleveland-based firm, America’s only publicly traded accountancy, fell by as much as 15% during trading hours.
The acquisition will combine more than 10,000 staff members — including over 3,500 professionals across Marcum’s 43 offices — and create opportunities to access new sectors.
“This transaction enables CBIZ to strengthen our presence in key markets, continue to attract and retain top talent, and innovate through technology,” said Jerry Grisko, president and chief executive officer of CBIZ, as cited in the press release.
Mid-tier U.S. accounting firms have looked into various paths to finance their growth, from international partnerships and employee stock ownership plans (ESOPs) to private equity.
According to the Bureau of Labor Statistics, the job market for accountants and auditors is expected to grow at a moderate rate of 4% from 2022 to 2032, with about 126,500 openings projected each year, on average.
Among all accounting firms, the importance of attracting and retaining talent is top of mind.
“Competition for talent is fierce, and this spans across all experience levels, from new graduates to seasoned professionals,” Will Andronico, managing principal of New England at Baker Tilly, told Invest:.
The CBIZ transaction, subject to approval of CBIZ stockholders and Marcum’s partners, is expected to close in 4Q24.
Top image via Marcum Boston
For more information, please visit:
