The accounting world is witnessing a seismic shift with the merger of CBIZ and Marcum LLP, two of the nation’s top 15 accounting firms. The completion of this acquisition propels the combined firm to new heights, with an anticipated annualized revenue of approximately $2.8 billion, positioning it among the top seven accounting firms based on 2023 revenue.
This merger is significant not only for accounting but also for valuation professionals, as many of these firms have robust valuation arms. The move reflects a broader trend of consolidation and growth fueled by private equity and strategic partnerships.
Expanding Capabilities and Expertise
The merger combines CBIZ’s acquisition of Marcum’s nonattest business and CBIZ CPAs’ acquisition of Marcum’s attest business. Together, the firms bring over 10,000 team members to deliver an unparalleled breadth of services and expertise.
“Now, with over 10,000 team members, we will offer our clients an enhanced breadth of services and depth of expertise unmatched in our industries,” said Jerry Grisko, president and CEO of CBIZ. He highlighted the merger’s potential to provide clients with innovative, data-driven solutions.
Jeffrey Weiner, Marcum’s chairman and CEO, emphasized the strategic alignment between the two firms: “By joining forces, we will capitalize on our strengths and leverage our similar models to bring more diversified services and even greater subject matter expertise to our clients.”
Consolidation Trends Continue
The merger follows a year of significant activity in the accounting and advisory space. Before the acquisition, CBIZ ranked 11th in revenue in 2023 at $1.42 billion, while Marcum ranked 13th at $1.33 billion. The combined entity leapfrogs several competitors, reflecting the impact of strategic mergers on the industry’s landscape.
This development comes amid growing private equity interest in large firms. Earlier this year, Grant Thornton finalized a major private-equity deal, while Armanino and Cohen & Co. also recently announced private equity investments. These deals signal increasing consolidation and financial backing for mid-sized and large firms looking to expand their services and market share.
Implications for Valuation Professionals
For valuation practitioners, the merger reinforces the importance of staying informed about M&A trends in the accounting sector. With firms like CBIZ and Marcum expanding their reach and capabilities, the demand for valuation services is likely to grow, particularly in M&A, tax planning, and litigation support.
The industry is evolving rapidly, with consolidation creating larger players that can offer more comprehensive services. Valuation professionals should keep an eye on these trends, as they may shape the future competitive landscape and client expectations.
Looking Ahead
The CBIZ-Marcum merger represents a transformative moment in the accounting and advisory space. As the combined firm leverages its expanded resources and expertise, it sets the stage for even greater innovation and growth. For practitioners in valuation and related fields, this is a reminder of the opportunities and challenges posed by the industry’s ongoing consolidation.
