When tips started pouring into the tipline about this early this morning I thought I must be still asleep and dreaming. No, it’s definitely real.
Grant Thornton announced this morning — via press release, how else — that with the help of the deep pockets of their private equity pals at New Mountain Capital they’re buying CBIZ in an all-cash transaction.
They helpfully broke out the key points thusly:
Largest transaction of its kind in more than 25 years; creates the fifth largest professional services, tax and advisory provider in the U.S.
New Mountain Capital makes new equity investment to enable the transaction
Enhances AI-enabled capabilities, multinational reach, industry specialization and service breadth — while creating strong cultural and strategic fit with a shared commitment to quality and client experience
CBIZ Benefits and Insurance Services segment to be set up for growth as independent company backed by New Mountain Capital
CBIZ shareholders to receive $55.00 per share in cash
Let’s get the obligatory quotes out of the way while we’re here:
According to Jim Peko, chief executive officer of Grant Thornton Advisors LLC and leader of the Grant Thornton Advisors multinational platform: “By combining our multinational platform with CBIZ’s strong market presence, we’re broadening our ability to support businesses through every stage of growth — from early development to global scale. Together, we’ll bring the quality, scope and capabilities clients need to navigate an increasingly complex and rapidly evolving business environment.”
Jerry Grisko, president and chief executive officer of CBIZ, said: “This is a historic combination with a complementary cultural and strategic fit. CBIZ has grown rapidly over many years to become a leading professional services provider. Joining Grant Thornton Advisors accelerates the realization of that vision, creating a stronger firm with new and exciting opportunities for our team members and enhanced service offerings for clients, while delivering significant value to CBIZ shareholders.”
Andre Moura, managing director of New Mountain Capital, said: “We’re pleased to continue to support Grant Thornton Advisors’ strategic growth plan, a journey we have been on together since May 2024. Following the acquisition of CBIZ, Grant Thornton in the U.S. will be the fifth largest professional services, tax and advisory provider in the nation and one of the most forward-thinking firms in the world regarding AI. That scale and forward momentum will put the combined firm in a stronger position than ever to serve its clients and create meaningful opportunities for its partners and staff.”
They also laid out an ambitious strategic plan that includes becoming “the employer of choice for top talent.”
- Build a differentiated professional services, tax and advisory provider. Following the acquisition of CBIZ, Grant Thornton Advisors will be better positioned to serve clients at all stages of growth with enhanced service offerings, multinational reach and premier technological resources across professional services, tax and advisory services.
- Accelerate technology and AI-enabled service delivery. The newly formed firm will support more clients with sophisticated AI-enabled service delivery, focused on using AI to transform client service, empower people and unlock new opportunities for growth.
- Enable greater depth of specialized industry expertise with expanded capabilities. The addition of CBIZ provides Grant Thornton Advisors with greater ability to deliver more tailored insights and solutions for clients, driven by a deep understanding of, and experience in, their specific industry.
- Strengthen client experience and service quality. Upon combination with CBIZ, Grant Thornton Advisors will maintain a strong focus on quality, applicable independence requirements, trust and client service — reflecting an ongoing commitment to its clients and purpose-built operating model.
- Increase the ability to invest in innovation, talent and technology. The combined firm will be the employer of choice for top talent in the industry, positioning the organization for long-term success in a fast-moving marketplace and creating even more opportunities for employees to grow, build rewarding careers and do their best work.
We have many questions about this but the main one is this: will all those Marcum procedures CBIZ started adopting go the way of the dodo and will remaining staff have to once again adapt to someone else’s way of working? Poor staff.
Feel free to share your thoughts in the comments. You can also reach out via email or text if you wanna talk about it.
Congratulations to all of the DYNAMIC CBIZ professionals who are lucky enough to be penetrated by the most DYNAMIC professional services firm in the world, Grant Thornton!!! May your firm members and WHOLE SELVES be engorged by GT’s INSTINCT FOR GROWTH so that you may penetrate new DYNAMIC CHOSEN MARKETS!!!
So stock closed on 6/30 at 32.08. Closed yesterday pre-announcement at 46.70. Up 45.6% in 4 weeks pre-announcement. I don’t think that was all members of congress, but maybe I’m wrong.
Is this a finalized deal for CBIZ?
This quote from the WSJ article has me thinking overwise:
“The deal, slated to close by the end of the year, includes a “go-shop” provision that lets CBIZ seek alternative acquisition proposals through Aug. 27, the companies said.”