A fairly big public accounting firm acquisition was announced earlier today, as top 11 firm CBIZ went shopping and picked up a Marks Paneth, ranked No. 43 in INSIDE Public Accounting’s top 100 firms list for 2021, reportedly for $81 million. With the acquisition, CBIZ is expected to gain an additional $138 million of revenue in 2022, which could put CBIZ right on Crowe’s heels for 10th spot in total accounting firm revenues.
According to this post on LinkedIn from Marks Paneth Managing Partner Abe Schlisselfed, the new firm will be creatively called …
CBIZ President and CEO Jerry Grisko was gushing about the transaction in an email he sent to staff today, in which he also thanked the world for making it happen.
A tipster send us Grisko’s email which said:
Team,
I am pleased to announce the acquisition of the non-attest business of Marks Paneth with Mayer Hoffman McCann (MHM) acquiring the attest business of the same firm.
Headquartered in New York City, Marks Paneth is ranked among the 50 largest accounting firms in the nation and in the top 10 for the mid-Atlantic region. With a team of over 600 professionals, Marks Paneth provides accounting, tax and advisory services to businesses across a diverse set of industries including real estate, construction, non-profit and manufacturing. In addition to their presence in New York City, Marks Paneth has offices in Long Island and Westchester, New York, Parsippany, New Jersey, Philadelphia, Pennsylvania, Boca Raton, Florida and Washington, D.C.
This is the largest transaction CBIZ has completed in our 25-year history. By joining forces with Marks Paneth, we will have the scale and capacity to provide a higher level of service to existing clients, compete for marquee clients across numerous industries and offer ever greater career opportunities for our team members. Beyond New York, Marks Paneth’s presence and reputation in Philadelphia and Boca Raton bolsters our existing offices and creates new opportunities for growth. Marks Paneth also has an office in Washington, DC, a new market for our Financial Services business.
Please join me in welcoming Abe Schlisselfeld, Senior Managing Director, and the Marks Paneth team to CBIZ. For more information, please view the transaction announcement here: CBIZ Acquires Marks Paneth.
I want to take this opportunity to thank Chris Spurio, President of Financial Services, Rick Mills, COO CBIZ MHM, Jeff Gluck, SMD FS New York, and Arianna Ehmer, Director of Operations along with our entire M&A team led by Matt Morelli, Senior Vice President, and including Brian Carey, Vice President, and Melanie Gilmour, Director of M&A and Integration, for their efforts to cultivate and complete this acquisition. The time, effort and energy required to secure an acquisition of this magnitude is significant especially after completing six important acquisitions last year. I would also like to thank our HR, Finance, Legal, Risk Management, Marketing and IT teams for all of their efforts to complete the transaction. I recognize this was a heavy lift during an already busy time of year.
Finally, I want to recognize Deb Sherman, Director of Compensation and Benefits, who is retiring from CBIZ after 20 years of service. Deb has been an integral part of our HR leadership team during her tenure and played a critical role in numerous acquisitions. Her sense of humor and tireless approach in guiding countless new team members through our benefits will be greatly missed. Please join me in thanking Deb and wishing her all the best in retirement!
Joining forces with Marks Paneth kicks off what we expect to be a busy year on the acquisition front and caps off the company’s remarkable performance in 2021.
Thank you all and happy New Year!
Jerry
One person who Grisko didn’t thank was deal broker extraordinaire Allan Koltin, but you just knew that:
- Koltin had his imprint on this deal; and
- He would have plenty to say about it.
MEGA-FIRMS COMBINE – CBIZ MHM, LLC and Marks Paneth LLP
In this acquisition, both CBIZ and Marks Paneth found a partner with unique strengths that are complementary to each other. @cpapracadvisor, Abe Schlisselfeld, CPA, EA, Jerry Grisko Jr. https://t.co/Z6YkhKszpY— Allan D. Koltin (@AllanDKoltin) January 10, 2022
At least Allan stopped short of calling the CBIZ/Marks Paneth transaction “the biggest deal of the century” like he did a year ago when BDO USA and MBAF united in holy public accounting firm matrimony.
CBIZ acquires accounting firm Marks Paneth of New York for $81 million [Philadelphia Business Journal]
Related article:
Koltin Consulting Group CEO Is Really Overhyping This BDO USA/MBAF Merger
Believe Crowe just acquired a slightly smaller Texas firm, probably reestablishing that gap for 10th by a hair.
Does this mean that CBIZ paid less than 1x annual revenue? I thought 1x was the going rate for small firms, and even more for mid-sized firms with good staff and procedures in place.