- CBIZ’s Deal Advisory Services sit within its rapidly growing Financial Services segment, whose Q2 2025 revenue jumped ~84% year over year largely from the Marcum acquisition.
- The $2.3 billion Marcum deal is intended to make CBIZ the 7th-largest U.S. accounting firm and unlock cross-selling opportunities across audit, tax, and advisory.
- Advisory revenues remain muted and highly sensitive to weak capital markets, SPAC fallout, and broader transactional slowdowns despite overall segment margin expansion.
- Key risks center on realizing $35–50 million of expected synergies, integrating Marcum under tight regulatory oversight, and managing higher debt while sustaining non-acquisition-driven growth.
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CBIZ’s Deal Advisory Services play a strategic role within its Financial Services segment, especially following the acquisition of Marcum LLP, which materially expanded CBIZ’s size, capabilities, and exposure to public company audit and transactional services. The Q2 2025 results illustrate that Financial Services revenue surged ~84% year over year to $569.8 million, largely driven by the Marcum acquisition, while the advisory component of this segment showed only restrained growth, reflecting weak capital markets and transactional activity. [4]
The Marcum deal—$2.3 billion in cash and stock—was intended to elevate CBIZ into the ranks of the top accounting firms (7th largest in the U.S.) with pro forma revenues of ~$2.8 billion. Key opportunities include cross-selling Marcum’s audit, tax, and advisory services within CBIZ’s existing client base, especially in private equity and middle market firms. Regulatory constraints required CBIZ to fold Marcum’s audit business into its affiliate MHM. [13][12]
From a margin perspective, CBIZ has realized adjusted EBITDA margin expansion in Financial Services (20% in Q2 2025) and executed mid-single-digit rate increases which exceed inflation in many cases. Nevertheless, advisory service revenues remain sensitive to macro conditions such as SPAC dislocations, SEC disclosures, and depressed capital market activity. [3]
Risks and open questions include: the ability to realize the estimated synergies (~$35-50 million) within expected time frame; ensuring audit quality and regulatory compliance (especially given past issues at Marcum); managing elevated interest expense and debt load; and maintaining strong performance in non-acquisition driven or advisory lines amid external headwinds. CBIZ indicates cost discipline and a focus on recurring, essential services as buffers. [5][2][4]
Supporting Notes
- CBIZ closed acquisition of Marcum on November 1, 2024, valued at $2.3 billion in cash and stock; combined entity expected to generate ~$2.8 billion in U.S. revenue, ranking as 7th largest accounting firm. [13][12]
- Q2 2025 Financial Services segment revenue was ~$569.8 million, up approximately 84% year-over-year; adjusted EBITDA for the segment more than doubled, with margin around 20%. [4]
- Total Q2 2025 revenue: $683.5 million, up ~62.7% vs. Q2 2024; six-month revenue similarly up ~66.4%. [4]
- Core accounting and tax service lines grew low single digits; advisory business remained flat in Q2 relative to expectations, constrained by external market dynamics. [2]
- Benefits and Insurance Services segment grew modestly (~5% YoY for revenue) with ~21% growth in adjusted EBITDA; National Practices segment saw revenue decline. [3][4]
- Synergy goals from the Marcum acquisition targeted at $35 million by 2025 with longer-term ambitions ~$50 million+, though integration expenses are nontrivial. [5]
- High recurring revenue base (~77%) in services helps stabilize overall performance amid advisory volatility.[3]
Sources
- [1] ir.cbiz.com (CBIZ, Inc.) — February 26, 2025
- [2] www.aol.com (AOL) — ~3 weeks ago
- [3] ir.cbiz.com (CBIZ, Inc.) — July 30, 2025
- [4] ir.cbiz.com (CBIZ, Inc.) — July 30, 2025
- [5] www.tipranks.com (TipRanks) — ~1 month ago
- [12] www.reuters.com (Reuters) — July 31, 2024
- [13] www.ft.com (Financial Times) — July 31, 2024