CBIZ Completes Landmark Merger with Marcum, Creating $2.8B Firm

Deal News | Nov 01, 2024 | EIN

CBIZ, a Cleveland-based finance and advisory services firm, has successfully acquired Marcum LLP in a strategic transaction originally announced in July. This significant merger, valued at $2.3 billion in cash and stock, amalgamates the companies into a powerhouse generating approximately $2.8 billion in annual revenue. The acquisition involves the transfer of Marcum's non-attest assets to CBIZ, while the attest business is taken over by CBIZ CPAs. The combined entity now boasts over 10,000 employees and a client base exceeding 135,000, enhancing CBIZ’s capacity to offer extensive services across sectors. Marcum, which faced substantial penalties from the SEC and PCAOB for audit failures last year, was the subject of numerous acquisitions leading up to and following this merger. CBIZ and Marcum have been active in M&A; CBIZ has executed more than 120 deals since 2008, while Marcum has also pursued similar growth strategies. This merger positions CBIZ as a prominent player within the professional services sector, ranking No. 11 on Accounting Today's list of the Top 100 Firms.

Sectors

Professional Services
Mergers and Acquisitions (M&A)

Geography

United States – Both CBIZ and Marcum have their operations predominantly based in the U.S., with offices across several states, making the transaction prominently relevant to the U.S. market.

Industry

Professional Services – This industry includes companies that provide specialist business services, such as accounting, audit, consulting, and advisory services. Both CBIZ and Marcum operate as professional service firms.
Mergers and Acquisitions (M&A) – The article focuses on CBIZ's acquisition of Marcum LLP, which is a significant example of activity within the mergers and acquisitions domain.

Financials

$2.3 billion – The cash-and-stock transaction value for CBIZ's acquisition of Marcum LLP.
$2.8 billion – The combined annual revenue of CBIZ and Marcum following the merger.
$1.6 billion – CBIZ's reported annual revenue last year.
$1.2 billion – Marcum's reported annual revenue and number of professionals last year.

Participants

Name	Role	Type	Description
CBIZ	Acquirer/Bidder	Company	A Cleveland-based finance, insurance, and advisory services firm with more than 120 offices in 33 states.
Marcum LLP	Target Company	Company	A New York-based accounting firm with 43 offices in major U.S. markets.
CBIZ CPAs	Acquirer/Attest Business	Company	Formerly known as Mayer Hoffman McCann, it is a national independent CPA firm associated with CBIZ for over 25 years.
Securities and Exchange Commission (SEC)	Regulatory Body	Government	U.S. government agency that oversees the securities industry and enforces laws against market manipulation.
Public Company Accounting Oversight Board (PCAOB)	Regulatory Body	Government	A non-profit corporation established by Congress to oversee the audits of public companies.