CBIZ Bundle
What is the history of CBIZ?
CBIZ, Inc. has grown into a major national provider of professional business services, focusing on financial, insurance, and advisory sectors for middle-market businesses. A significant development was the November 2024 acquisition of Marcum LLP's non-attest business for about $2.3 billion.
This acquisition propelled CBIZ to become the seventh-largest accounting firm in the U.S. and the leading full-service professional services advisor for middle-market companies, with projected annual revenue of $2.8 billion.
Originally founded in 1987 as Stout Environmental, Inc., and later known as Century Business Services, Inc., the company aimed to consolidate various professional services. It has expanded to over 160 locations across 22 major U.S. markets, employing more than 10,000 individuals.
The company's financial performance in 2024 showed robust growth, with full-year revenue reaching $1.81 billion, a 14.0% increase from 2023. The first quarter of 2025 saw revenue climb to $838.0 million, a significant 69.5% jump compared to the same period in 2024. This expansion highlights the company's strategic development, which can be further analyzed using tools like the CBIZ BCG Matrix.
What is the CBIZ Founding Story?
The CBIZ company history began in 1987 with the establishment of Stout Environmental, Inc. This Delaware corporation embarked on a path of growth through strategic acquisitions, signaling early investor confidence and financial backing. The company's foundational vision was to consolidate diverse professional services, a strategy that shaped its initial expansion and continues to influence its business model.
CBIZ Origins and Early Evolution
CBIZ's journey started in 1987 as Stout Environmental, Inc. A pivotal moment arrived in October 1996 with the merger of Stout Environmental, Inc. and Century Surety Company, leading to the formation of International Alliance Services, Inc. (IASI).
- In December 1997, IASI divested its environmental operations and rebranded as Century Business Services, Inc., commencing trading on the NYSE under the ticker 'CBZ'.
- The company's strategic intent from its inception was to create a unified platform for various professional services.
- A significant acquisition in 1998 was Beall Garner Screen & Geare Inc., a prominent insurance agency.
- The official name change to CBIZ, Inc. occurred in August 2005, marking a new chapter in its corporate identity.
- Since 1998, CBIZ has operated in tandem with CBIZ CPAs (formerly Mayer Hoffman McCann P.C.) under an alternative practice structure, collaborating through the joint tax and consulting entity, CBIZ MHM LLC. This period favored consolidation within the professional services sector, a trend CBIZ adeptly capitalized on.
- The current leadership includes President and CEO Jerry Grisko, who assumed the CEO role in March 2016, having been President since February 2000. Understanding the Competitors Landscape of CBIZ provides further context to its strategic positioning and growth.
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What Drove the Early Growth of CBIZ?
The early trajectory of the CBIZ company was marked by a period of aggressive expansion through acquisitions between 1997 and 1999. This strategy focused on integrating numerous accounting firms and business service providers to quickly establish a national presence and broaden its service offerings.
Aggressive Acquisition Phase
From 1997 to 1999, the company engaged in a significant 'roll-up strategy,' acquiring a multitude of accounting firms and business service providers. This approach was instrumental in its initial establishment and rapid market penetration across the nation.
Diversification and Integration in the 2000s
The decade following its initial expansion saw a concentrated effort on integrating the acquired entities. Service lines were diversified to encompass employee benefits, valuation services, and risk advisory, enhancing the company's comprehensive client support.
Strategic Focus in the 2010s
During the 2010s, the company strategically divested non-core assets to refine its focus on key growth areas. Simultaneously, it continued to acquire firms that complemented its existing service portfolio, particularly in technology and advisory services.
Recent Growth and Acquisitions
In fiscal year 2024, total revenue reached $1.81 billion, a 14.0% increase from the prior year. The first quarter of 2025 reported $838.0 million in revenue, a 69.5% jump from Q1 2024. Recent acquisitions, like CompuData in March 2024 and Erickson, Brown & Kloster in February 2024, underscore its ongoing expansion and commitment to enhancing its market position, aligning with its Mission, Vision & Core Values of CBIZ.
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What are the key Milestones in CBIZ history?
The CBIZ company history is marked by strategic growth and adaptation. A significant milestone was the acquisition of Marcum LLP's non-attest business in November 2024, valued at approximately $2.3 billion. This move positioned CBIZ as the seventh-largest accounting firm in the U.S. and the leading full-service professional services advisor for middle-market businesses, with projected annualized revenue of $2.8 billion and an estimated 10% boost to adjusted earnings per share in 2025.
| Year | Milestone |
|---|---|
| 1999 | Faced accounting practice issues, leading to a revision in goodwill accounting. |
| Ongoing | Successfully integrated over 200 companies, averaging 4-6 acquisitions annually over 25 years. |
| November 1, 2024 | Acquired Marcum LLP's non-attest business for approximately $2.3 billion, becoming the seventh-largest U.S. accounting firm. |
Innovation at CBIZ is evident in its proactive embrace of technology and service diversification. The company has expanded its offerings in technology and advisory services, including digital transformation and data analytics, to address evolving client needs.
Technology and Advisory Expansion
CBIZ has focused on growing its technology and advisory services, incorporating digital transformation and data analytics to meet changing client demands.
Expertise in Emerging Technologies
The company offers specialized expertise in artificial intelligence (AI), cloud and infrastructure, cybersecurity, and enterprise performance technology.
Client Benefit Maximization
These services are designed to help businesses maximize their benefits and minimize risks within a rapidly innovating technological landscape.
Resilience and Financial Performance
CBIZ demonstrates resilience by delivering strong earnings and cash flow across varied business climates, as indicated by its first-quarter 2025 financial results.
Strategic Acquisition Model
The company's consistent growth is underpinned by a strategic acquisition model, a key component of its Growth Strategy of CBIZ.
Service Diversification
Continuous service diversification has been crucial to CBIZ's sustained development and market positioning.
CBIZ has navigated significant challenges throughout its history, including addressing accounting practice issues in 1999 and managing intense competition within the professional services market. The company consistently faces pressure from larger national firms and specialized regional competitors.
Accounting Practice Revisions
In 1999, the company had to revise its accounting practices, specifically concerning goodwill accounting, to address identified issues.
Market Competition
CBIZ operates in a highly competitive professional services market, constantly contending with larger national firms and specialized regional players.
Integration of Acquisitions
Despite competitive pressures, the company has a strong history of successfully integrating acquisitions, demonstrating effective operational management.
Adapting to Evolving Client Needs
A continuous challenge is adapting its service portfolio to meet the evolving needs of clients in a dynamic business environment.
Maintaining Growth Momentum
Sustaining the pace of growth through strategic acquisitions while ensuring successful integration remains an ongoing strategic challenge.
Technological Disruption
Navigating and capitalizing on rapid technological advancements, such as AI and cybersecurity, presents both opportunities and challenges for service delivery.
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What is the Timeline of Key Events for CBIZ?
The CBIZ company history is marked by significant transformations and strategic growth, beginning with its founding in 1987. From its early days, the company has navigated mergers, name changes, and market shifts, evolving into a prominent professional services provider. This brief overview of CBIZ company history highlights its journey through key milestones.
| Year | Key Event |
|---|---|
| 1987 | Founded as Stout Environmental, Inc. |
| 1996 | Merged to form International Alliance Services, Inc. (IASI). |
| 1997 | IASI sold environmental operations, changed name to Century Business Services, Inc., and began trading on the NYSE. |
| 1998 | Acquired Beall Garner Screen & Geare Inc. and established an alternative practice structure with Mayer Hoffman McCann P.C. |
| 1999 | Revised accounting for goodwill due to questioned practices. |
| 2005 | Company name officially changed to CBIZ, Inc. |
| 2016 | Jerry Grisko was appointed President and CEO. |
| 2022 | Acquired Marks Paneth LLP and Stinnett & Associates, LLC. |
| 2023 | Completed acquisitions of Danenhauer and Danenhauer, Inc., Somerset CPAs and Advisors, Pivot Point Security, Ickovic and Co. PC, and American Pension Advisors, Ltd. |
| March 2024 | Acquired CompuData, a managed IT services provider. |
| November 1, 2024 | Acquired Marcum LLP's non-attest business, positioning CBIZ as the seventh-largest accounting firm in the U.S. with projected annualized revenue of $2.8 billion. |
| December 31, 2024 | Reported total revenue of $1.81 billion for the fiscal year. |
| March 31, 2025 | Reported first-quarter revenue of $838.0 million, a significant 69.5% increase compared to Q1 2024. |
Integration of Marcum LLP's Non-Attest Business
In 2025, CBIZ is prioritizing the seamless integration of the recently acquired Marcum LLP's non-attest business. This strategic move is expected to significantly bolster the company's market position.
Projected Financial Performance for 2025
The company forecasts full-year 2025 total revenue between $2.8 billion and $2.95 billion. Adjusted earnings per share are anticipated to range from $3.60 to $3.65, with adjusted EBITDA projected at $450 million to $456 million.
Growth Strategy: Organic and Acquisition Driven
CBIZ aims for balanced growth through both organic initiatives and strategic acquisitions. The company actively seeks new acquisition opportunities, with potential for further deals later in 2025 or early 2026.
Commitment to Client Success and Innovation
The company remains dedicated to providing forward-thinking insights and actionable solutions. This focus helps clients navigate complex business challenges and accelerate their growth, reflecting its foundational mission.
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