CBIZ Bundle
What is the Competitive Landscape of CBIZ?
The professional services industry is dynamic, shaped by technology and client needs. CBIZ's acquisition of Marcum LLP on November 1, 2024, a significant move, positions it strongly in serving middle-market businesses.
This strategic acquisition highlights the intense competition, pushing firms to enhance capabilities and expand their reach. CBIZ, founded in 1996, has grown through acquisitions, becoming a national advisor in accounting, insurance, and business services.
In fiscal year 2024, CBIZ achieved $1.81 billion in revenue, a 14.0% increase, with Q4 revenue up 40.5%. This growth reflects its market presence. Understanding CBIZ's competitive positioning involves examining its market share, key competitors, and advantages, as well as its approach to industry trends. A key tool for analyzing its business units is the CBIZ BCG Matrix.
Where Does CBIZ’ Stand in the Current Market?
CBIZ has solidified a robust market position within the professional services sector, with a particular focus on serving middle-market businesses throughout the United States. Its strategic acquisition of Marcum LLP in November 2024 propelled it to become the seventh-largest accounting firm nationwide.
Market Share within Professional Services
In Q1 2025, CBIZ commanded a 24.37% market share in the professional services industry, with a trailing twelve-month share of 16.95%. This demonstrates a significant presence and ongoing growth trajectory.
Market Share in Broader Services Sector
Within the wider services sector, CBIZ held a 14.65% market share in Q1 2025, and 13.12% for the trailing twelve months. These figures highlight its diversified reach beyond specialized professional services.
Core Service Offerings
CBIZ provides a comprehensive suite of financial advisory, accounting, and tax solutions. It also offers vital human capital management services, including employee benefits, payroll, and HR consulting.
Revenue Contribution by Segment
In 2024, the Financial Services segment was the largest revenue driver, contributing 75.1% of total revenue. Benefits and Insurance Services followed with 22.1%, and National Practices accounted for the remaining 2.8%.
CBIZ's extensive operational footprint spans over 160 locations across 22 major U.S. markets, supported by more than 10,000 team members. This broad geographic reach enables the company to serve a diverse clientele across over 25 industries, including key sectors like agribusiness, construction, healthcare, manufacturing, private equity, real estate, and technology. The company's growth strategy heavily relies on strategic acquisitions, which have consistently broadened its service portfolio and geographical penetration.
Financial Performance and Outlook
For the full year ending December 31, 2024, CBIZ reported total revenue of $1.81 billion, marking a significant 14.0% increase from the previous year. The first quarter of 2025 saw revenue surge to $838.0 million, a substantial 69.5% rise compared to Q1 2024.
- Full-year 2024 revenue: $1.81 billion
- Full-year 2024 revenue growth: 14.0%
- Q1 2025 revenue: $838.0 million
- Q1 2025 revenue growth vs. Q1 2024: 69.5%
- Projected full-year 2025 revenue: $2.8 billion to $2.95 billion
- Projected adjusted EPS for 2025: $3.60 to $3.65
This performance underscores CBIZ's strong market position and its effective Brief History of CBIZ, positioning it for continued expansion and market leadership.
CBIZ SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
Who Are the Main Competitors Challenging CBIZ?
CBIZ operates within a dynamic and crowded professional services arena. The company faces a multifaceted competitive landscape, encountering both direct rivals offering similar accounting, tax, and advisory services, and indirect competitors that provide overlapping solutions within the broader financial and human capital management sectors. Understanding these key competitors is crucial for a comprehensive Target Market of CBIZ analysis.
Major Professional Services Competitors
In the accounting, tax, and advisory space, CBIZ contends with large national and international accounting firms. These entities often leverage extensive global networks and strong brand recognition to serve multinational corporations.
Regional and Local Firm Competition
Numerous regional and local accounting firms also present competition, frequently competing on personalized service offerings and more competitive pricing structures, particularly appealing to small and medium-sized businesses.
Payroll and HR Services Rivals
Within human capital management and benefits, CBIZ faces competition from major insurance brokers, dedicated payroll providers, and specialized HR consulting firms, all vying for market share in these critical business functions.
Market Share Leaders in Services
As of Q1 2025, Paychex Inc. held a significant 38.03% market share in the professional services industry, with Trinet Group Inc. close behind at 37.61%. CBIZ's market share in this sector was 24.37%.
Broader Services Sector Competition
In the overall services sector for Q1 2025, Paychex Inc. commanded a 22.87% market share, followed by Trinet Group Inc. at 22.62%. CBIZ's share in this broader category was 14.65%.
Tax Services Competitor
H&R Block Inc. is a notable competitor, particularly in the tax services segment, holding a 39.86% market share within the services sector in Q1 2025, indicating strong presence in tax preparation.
Industry Dynamics and Disruptors
The competitive landscape is continuously shaped by emerging players, especially those leveraging technology to innovate service delivery models. Furthermore, the industry's ongoing consolidation through mergers and acquisitions, such as CBIZ's acquisition of Marcum LLP, leads to the creation of larger, more comprehensive service providers, altering the competitive dynamics and expanding service portfolios.
- Direct competition from large national and international accounting firms.
- Competition from regional and local accounting firms focusing on personalized service.
- Rivalry from payroll providers and HR consulting firms in human capital management.
- Emerging technology-driven solutions disrupting traditional service models.
- Consolidation through mergers and acquisitions reshaping market players.
CBIZ PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
What Gives CBIZ a Competitive Edge Over Its Rivals?
CBIZ differentiates itself in the competitive landscape through a multifaceted approach, combining a broad service offering with a strategic national footprint. Its integrated financial, insurance, and advisory services, encompassing accounting, tax, and employee benefits, position it as a comprehensive provider for middle-market businesses. This broad spectrum of services sets it apart from more specialized competitors, offering clients a consolidated solution for their diverse needs.
The company's operational model is a key differentiator. By blending national resources with localized expertise, CBIZ provides tailored solutions that resonate with specific market dynamics and regulatory environments. This decentralized structure, supported by over 160 locations and 10,000 team members, fosters deep client relationships and a nuanced understanding of regional business challenges.
Diversified Service Portfolio
CBIZ offers a comprehensive suite of services, acting as a single point of contact for accounting, tax, insurance, and advisory needs. This integrated approach simplifies client engagement and provides holistic solutions.
National Presence, Local Expertise
With over 160 locations, CBIZ combines the reach of a national firm with the personalized service of local offices. This allows for adaptable strategies that cater to regional market nuances.
Strategic Acquisition Strategy
The company's growth is significantly fueled by strategic acquisitions, such as the integration of Marcum LLP in November 2024. This expands service capabilities and market reach.
Focus on Middle-Market Businesses
CBIZ targets the underserved middle-market segment, providing specialized solutions that address the unique challenges and opportunities faced by these businesses.
Sustainable Growth and Financial Performance
CBIZ's consistent financial performance, including 2024 revenue of $1.81 billion, a 14.0% increase year-over-year, underscores its operational efficiency and effective growth strategy. This financial strength supports its ongoing expansion and service development, reinforcing its competitive advantages in the market.
- Diversified service offerings provide a competitive edge over specialized firms.
- A decentralized model ensures localized client service while leveraging national resources.
- Strategic acquisitions enhance service breadth and geographic penetration.
- A dedicated focus on the middle-market segment addresses a key industry need.
- Consistent financial growth indicates strong operational execution and market positioning.
CBIZ Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
What Industry Trends Are Reshaping CBIZ’s Competitive Landscape?
The professional services industry is undergoing rapid evolution, shaped by technological advancements, shifting workforce demographics, and ongoing consolidation. For CBIZ, understanding these dynamics is crucial for navigating its competitive landscape and capitalizing on future opportunities. The company's ability to adapt to digital transformation, attract and retain skilled talent, and strategically manage mergers and acquisitions will be key determinants of its sustained market position.
CBIZ's competitive intelligence report indicates that the firm is actively integrating advanced technologies like AI and machine learning to enhance its service delivery, particularly in areas such as cybersecurity and managed IT. This proactive approach is essential as the industry sees a significant shift towards digital channels, with over one-third of professional services firms expecting 75% or more of their revenue from these avenues by 2025. However, the successful implementation of AI also necessitates robust governance and risk management frameworks to address associated complexities.
Industry Trends: Digital Transformation and Talent Dynamics
Digital transformation is a dominant force, with AI and advanced analytics reshaping service delivery. Simultaneously, attracting and retaining talent skilled in emerging technologies is a top priority, as firms compete with tech startups for specialized professionals.
Mergers and Acquisitions as a Growth Strategy
The professional services sector is characterized by significant M&A activity, aimed at expanding capabilities and market reach. CBIZ's acquisition of Marcum LLP in late 2024 exemplifies this trend, bolstering its presence in the middle market.
Future Challenges and Opportunities for CBIZ
Economic uncertainties and increased regulatory scrutiny pose potential challenges. Conversely, opportunities lie in emerging markets, continuous product innovation, and strategic technology-driven partnerships.
CBIZ's Strategic Outlook and Growth Projections
For 2025, CBIZ projects total revenue between $2.8 billion and $2.95 billion, with a focus on integrating recent acquisitions. The company also maintains a pipeline for future strategic acquisitions, underscoring its commitment to growth.
Key Differentiators and Resilience Strategies
CBIZ's strategy for resilience centers on sustained investment in technology, enhancing operational efficiencies, and maintaining a high standard of client service excellence. These elements are critical for navigating the competitive pressures and market shifts within the professional services industry.
- Continued investment in advanced technologies like AI and ML.
- Focus on operational efficiencies to manage costs and improve service delivery.
- Prioritization of talent development and retention strategies.
- Strategic approach to mergers and acquisitions for market expansion.
- Commitment to client service excellence as a core differentiator.
CBIZ Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Brief History of CBIZ Company?
- What is Growth Strategy and Future Prospects of CBIZ Company?
- How Does CBIZ Company Work?
- What is Sales and Marketing Strategy of CBIZ Company?
- What are Mission Vision & Core Values of CBIZ Company?
- Who Owns CBIZ Company?
- What is Customer Demographics and Target Market of CBIZ Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.