How Does CBIZ Company Work?

This segment offers traditional accounting and tax compliance, alongside extensive advisory services. These include transaction advisory, risk advisory, litigation support, and valuation services. They also specialize in healthcare compliance and consulting for federal and state governments.

This division provides brokerage and consulting for group health benefits, property and casualty insurance, and retirement plan advisory. It also encompasses investment services, payroll, and broader human capital management solutions.

This group focuses on information technology services, including managed networking and hardware. It also provides specialized healthcare consulting, further broadening the scope of CBIZ's offerings.

CBIZ leverages deep industry knowledge, innovative technology, and data-driven insights to deliver actionable solutions. The company emphasizes building strong client relationships and acting as a strategic partner, ensuring proactive communication.

A pivotal moment for CBIZ was the acquisition of Marcum LLP's non-attest business, closing on November 1, 2024, for approximately $2.3 billion. This move, financed equally with cash and stock, established CBIZ as the seventh-largest accounting services provider in the U.S. The company also acquired Erickson, Brown & Kloster and CompuData, Inc. in 2024, continuing a pattern of 34 acquisitions averaging $6.6 million, which fuels its consistent growth.

CBIZ has effectively managed market challenges, including the integration of the Marcum acquisition, which is progressing as planned with high retention rates for both employees and clients. The company's operating model has proven resilient, delivering strong earnings and cash flow even amidst economic and geopolitical uncertainties that affect non-recurring service lines.

CBIZ differentiates itself through a broad spectrum of integrated financial, insurance, and advisory services tailored for the middle market. This focus allows for customized solutions, supported by an estimated 90% client retention rate, reflecting high service quality. The company also benefits from a strong brand, talent acquisition, and investments in technology and data analytics to enhance efficiency and client value.

The CBIZ business model is characterized by a substantial portion of recurring revenue, providing inherent stability and predictability. The company consistently evolves by expanding its service offerings and pursuing strategic acquisitions, particularly in high-growth areas like technology and M&A advisory, ensuring it remains competitive and responsive to market trends.

CBIZ is a leading national professional services advisor, ranking as the seventh-largest accounting firm in the U.S. after acquiring Marcum LLP in late 2024. The company focuses on serving middle-market businesses and boasts a client retention rate of around 90%.

The firm competes with other major accounting and professional services providers such as RSM, Grant Thornton, and BDO. Additionally, it faces competition in specific market segments from companies like Brown & Brown and H&R Block.

CBIZ faces risks including economic and geopolitical uncertainties impacting demand for services, operational risks tied to information processing systems, and intense competition within the fragmented professional services industry.

Potential liabilities from errors and omissions, litigation, and limitations on future acquisitions pose significant risks. The increased leverage from the Marcum acquisition and its $2.0 billion credit facility also introduce financial risks, including potential covenant defaults.