DEFA14A: CBIZ to Acquire Marcum, Creating Seventh-Largest Accounting Services Provider in the U.S.

CBIZ announces a definitive agreement to acquire Marcum, aiming to create a leading professional services provider with revenues close to $3 billion and over 10,000 team members.

Summary

• CBIZ has announced a definitive agreement to acquire Marcum.
• The transaction is expected to close in the fourth quarter of 2024.
• The combined entity will become the seventh-largest accounting services provider in the U.S.
• The combined company is expected to have revenues close to $3 billion and more than 10,000 team members.
• The acquisition aims to provide clients with an unmatched breadth of services and depth of expertise.
• Both CBIZ and Marcum share similar values and a focus on client service and growth.
• The company will file a proxy statement with the SEC regarding the transaction.

Sentiment

Score: 8

Explanation: The document expresses a highly positive sentiment regarding the acquisition, emphasizing the benefits for clients, employees, and the company's future growth. The management's comments and the overall tone suggest confidence in the success of the transaction.

Positives

• The acquisition will create a larger, more diversified professional services firm.
• Clients will benefit from enhanced services, solutions, and increased innovation.
• The combined company will have a greater presence in key markets.
• The acquisition is expected to drive superior outcomes for clients.
• The integration aims to provide a seamless client experience with continuity of support.
• The combined company will have the scale and capital to invest in people, technology, and growth.

Risks

• The transaction is subject to regulatory approvals and approval by Marcum's partners and CBIZ's stockholders.
• There is a risk of litigation related to the transaction.
• Anticipated benefits and synergies may not be achieved in a timely manner or at all.
• The costs of the transaction and integration may be higher than anticipated.
• The integration process could disrupt ongoing plans and operations.
• Financing may not be obtained as anticipated, potentially increasing the company's leverage.

Future Outlook

The combined company aims to leverage its scale and resources to invest in people, technology, and innovative services, positioning itself for growth in a rapidly transforming industry.

Management Comments

• Jerry Grisko stated that the acquisition of Marcum is the largest and most significant in CBIZ's history.
• Jerry Grisko mentioned that CBIZ will become the seventh-largest accounting services provider in the country after the acquisition closes.
• Jerry Grisko emphasized that the name CBIZ will remain and clients will remain at the center of all they do.
• Jerry Grisko stated that the team members clients value will continue to serve their needs.

Industry Context

The accounting industry is undergoing a transformation due to the war for talent, the rise of new technologies like AI, and the shift toward a data-driven market. This acquisition positions CBIZ to better compete in this evolving landscape by increasing its scale and resources.

Comparison to Industry Standards

• With projected revenues close to $3 billion, the combined CBIZ and Marcum will be positioned to compete with the largest accounting firms in the US, such as Deloitte, EY, PwC, and KPMG.
• The combined company's workforce of over 10,000 team members will allow it to serve a broader range of clients and industries, similar to the reach of national firms like RSM and BDO.
• The focus on technology and data-driven solutions aligns with the industry trend of leveraging innovation to improve efficiency and client service, as seen in investments by companies like Accenture and Tata Consultancy Services in their accounting and consulting practices.

Stakeholder Impact

• Shareholders are urged to read the definitive proxy statement carefully before making any voting or investment decision.
• Clients are assured of continued support and enhanced services.
• Employees are expected to benefit from the growth and opportunities of the combined company.

Next Steps

• CBIZ will file a proxy statement with the SEC.
• The definitive proxy statement will be mailed to the company's stockholders.
• CBIZ and Marcum will work together to plan for the integration of the combined businesses.
• The transaction is expected to close in the fourth quarter of 2024.

Key Dates

Keywords

acquisition, CBIZ, Marcum, accounting services, professional services, merger