CBIZ, Inc. (CBZ): History, Ownership, Mission, How It Works & Makes Money

Is CBIZ, Inc. (CBZ) just another professional services firm, or is it a growth engine that institutional investors like BlackRock, Inc. are banking on?

The company's projected full-year 2025 revenue of between $2.8 billion and $2.95 billion-a massive jump fueled by the strategic Marcum acquisition-defintely makes it a key player in the middle-market advisory space, employing over 10,000 team members across more than 160 locations.

If you're a portfolio manager evaluating the professional services sector, you need to understand the history and operational framework that drove a 63.7% revenue increase for the first nine months of 2025, plus how its core mission generates that kind of cash.

Let's break down exactly how this company works and makes money so you can map the near-term risks and opportunities for your own investment or business strategy.

CBIZ, Inc. (CBZ) History

You're looking for the origin story of CBIZ, Inc., and honestly, it's not a simple startup tale; it's a story of strategic consolidation, or what we in finance call a 'roll-up.' The company you see today, a national professional services advisor, was deliberately built through a series of rapid acquisitions, giving it a massive footprint almost overnight. The key takeaway is that the company's current scale and projected 2025 revenue of up to $2.95 billion is a direct result of this aggressive, acquisition-led growth model, which culminated in the transformative Marcum deal.

Given Company's Founding Timeline

Year established

The corporate entity traces its roots to 1987 as Stout Environmental, Inc., but the professional services platform-the core of CBIZ, Inc.-was effectively established in 1996. This is when the company transitioned its focus to consolidating accounting, insurance, and advisory services.

Original location

The professional services roll-up, initially named Century Business Services, Inc., established its headquarters in Cleveland, Ohio, following a key merger in 1996. The company is now headquartered in Independence, Ohio.

Founding team members

The company was founded by Canadian entrepreneur Michael G. DeGroote Sr., who pioneered the multi-function outsourced business model. The actual execution of the roll-up was orchestrated by an initial leadership and sponsor group, leveraging DeGroote's vision and capital to acquire numerous small and mid-sized firms.

Initial capital/funding

CBIZ, Inc. did not start with a traditional seed round. Its initial funding came from leveraging a public corporate shell and substantial financial backing from its founder, Michael G. DeGroote Sr., to execute an aggressive acquisition strategy. This 'roll-up' model was funded by a combination of cash, debt, and public equity, with the company's common stock trading on the NASDAQ and later the NYSE starting in 1996/1997.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by a few pivotal, high-stakes decisions. The biggest one was the initial shift from a small environmental company to a national professional services consolidator in the mid-1990s. That was the first big bet. The second, and most recent, is the Marcum acquisition, which fundamentally changed CBIZ, Inc.'s scale and market position.

• The Roll-Up Strategy (1997-1999): The company acquired over 200 local and regional accounting, insurance, and business service firms in a rapid-fire sequence. This aggressive pace was the engine for initial national scale, but it also created integration and accounting challenges that took years to resolve.
• The Alternative Practice Structure (1998): This legal structure with Mayer Hoffman McCann P.C. (MHM) was a game-changer. It allowed CBIZ, Inc. to offer a full suite of services-including tax, advisory, and benefits-while MHM handled the independent attest work. This let them compete with the Big Four firms in the middle-market space without compromising audit independence.
• The Marcum Acquisition (November 2024): This transaction, valued at approximately $2.3 billion for Marcum's non-attest business, is the single most transformative event in recent history. It instantly boosted the combined entity to over 10,000 team members across more than 160 locations and is expected to add 10%+ to its adjusted diluted Earnings Per Share (EPS) in the 2025 fiscal year. Here's the quick math: the deal is projected to push CBIZ, Inc.'s total annualized revenue to a range of $2.8 billion to $2.95 billion for 2025, a massive leap from its 2024 revenue of around $1.67 billion.

To be fair, this kind of growth brings integration risk, but the expected annual cost synergies of over $25 million by 2026 show a clear path to value creation. The next few years are all about successfully merging these two giants. If you want to dive deeper into the current shareholder base and why they're buying into this new scale, you can read Exploring CBIZ, Inc. (CBZ) Investor Profile: Who's Buying and Why?

CBIZ, Inc. (CBZ) Ownership Structure

CBIZ, Inc. features a dispersed ownership structure, which is typical for a publicly traded company, but it's heavily dominated by institutional money. This means the company's strategic direction is influenced less by a single founder or family, and more by the collective interests of large investment firms like Vanguard Group Inc. and BlackRock, Inc.

Given Company's Current Status

You should know that CBIZ, Inc. is a public entity, trading on the New York Stock Exchange (NYSE) under the ticker symbol CBZ. This public status is what mandates the high level of financial transparency we rely on as analysts, but it also subjects the company to the pressures of quarterly earnings. For the full year 2025, the company is guiding for total revenue between $2.8 billion and $2.95 billion, which is a significant figure that keeps the market watching.

To be fair, this structure is a double-edged sword: it provides access to capital for growth, but it also creates a constant focus on short-term results. The company's ability to execute on its strategic acquisitions, like the integration of Marcum, while delivering on its adjusted EPS guidance of $3.60 to $3.65 for 2025, is what really matters to these large shareholders.

If you want a deeper dive into the major players holding these shares, you can check out Exploring CBIZ, Inc. (CBZ) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

The control of CBIZ, Inc. is overwhelmingly held by institutional investors, which is a key factor in understanding its governance. Here's the quick math on who owns the shares as of November 2025, which shows where the real voting power sits.

Given Company's Leadership

The leadership team is a mix of long-tenured executives and specialized segment leaders, which is crucial for a diversified professional services firm. The decision-making structure is steered by this executive team, with oversight from the Board of Directors, chaired by Rick L. Burdick.

Jerry Grisko, the President and CEO, has been with the company for decades, providing a steady hand and a focus on strategic growth through acquisition. He's been the CEO since 2016, defintely a long run. The structure is designed to empower segment presidents while centralizing key functions like finance and technology. This decentralized model is how they manage over 10,000 team members across more than 160 locations.

The key executive team as of November 2025 includes:

• Jerry Grisko: President & CEO
• Brad Lakhia: Senior Vice President, Chief Financial Officer
• Michael Kouzelos: President, CBIZ Benefits & Insurance Services, Inc.
• Chris Spurio: President, CBIZ Financial Services
• Peter Scavuzzo: Senior Vice President, Chief Strategy Officer and National Leader of Technology

CBIZ, Inc. (CBZ) Mission and Values

CBIZ, Inc.'s core purpose extends beyond its projected 2025 revenue of up to $2.95 billion; it is fundamentally about leveraging a national platform to provide local, actionable expertise that drives client success and makes the firm an employer of choice.

CBIZ, Inc.'s Core Purpose

You're investing in more than just a balance sheet; you're buying into a culture defined by a clear mission and five non-negotiable core values. This cultural DNA helps explain how the firm manages over 10,000 team members across more than 160 locations in 22 major markets.

Official mission statement

The mission statement is direct and client-focused, setting the expectation for service quality over mere transaction volume.

• To provide exceptional advice and solutions that help our clients achieve their goals.

Vision statement

CBIZ, Inc.'s vision is a dual-focus target-it aims for market leadership while simultaneously cultivating an internal environment that attracts and retains top talent.

• To be recognized by our clients as the premier provider of accounting, insurance and other professional business services.
• To be recognized by our team members as their employer of choice.

This vision is defintely a key metric for long-term value, because happy, retained employees directly translate to better client service and higher margins. For a deeper dive into who is betting on this vision, check out Exploring CBIZ, Inc. (CBZ) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

While the firm doesn't use a single, short tagline in all its communications, its core messaging hinges on the concept of 'One CBIZ' and the outcome it delivers to the middle-market businesses it serves.

• Actionable Insights. Accelerated Growth.

Core Values in Action

The company's five core values are the guiding principles that shape every strategic decision, from acquisitions to client engagement. They are the framework for achieving the vision, especially in a fragmented professional services industry.

• We expect to win.
• We are OneCBIZ. (The power of many coming together as one to accelerate growth.)
• We do the right thing.
• Our people matter.
• We are dedicated to the success of our clients.

Here's the quick math: when you have a Q3 2025 adjusted diluted earnings per share (EPS) of $1.01, beating Wall Street forecasts, it shows these values translate to operational efficiency and financial outperformance. The 'OneCBIZ' value, in particular, drives the integration of services-like accounting, tax, and insurance-which is a major competitive advantage in the complex middle-market space.

CBIZ, Inc. (CBZ) How It Works

CBIZ, Inc. is a national professional services advisor that simplifies complex financial and business challenges for the U.S. middle market by delivering integrated accounting, tax, benefits, and insurance solutions. They function as a single, trusted partner, combining national scale with local expertise to help clients manage risk and accelerate growth, aiming for a full-year 2025 total revenue between $2.8 billion and $2.95 billion.

CBIZ, Inc.'s Product/Service Portfolio

CBIZ, Inc.'s Operational Framework

You're looking for a clear picture of how the machine runs, and honestly, it's all about the integrated delivery model they call 'One CBIZ.'

The core of the framework is a national platform of over 10,000 team members across more than 160 locations that delivers services locally. This structure allows a mid-market client to get the deep, technical expertise of a huge firm-like navigating the new tax laws-but with the personal service of a local advisor. That's a defintely powerful combination.

• Recurring Revenue Base: Approximately 72% of the company's revenue comes from essential, recurring services, like annual accounting and tax compliance, which provides a stable, predictable financial foundation.
• Value-Creation Engine: Growth is driven by a three-part strategy: organic growth, cross-serving existing clients with additional services (e.g., selling benefits consulting to a tax client), and strategic acquisitions.
• Technology Integration: Tools like Centrally HR are key, simplifying complex human capital management tasks such as payroll and compliance for clients, which helps them stay audit-ready.

They focus on turning complexity into clarity. Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

CBIZ, Inc.'s Strategic Advantages

The company's market success hinges on a few clear, structural advantages that are tough for competitors to replicate, especially in the fragmented middle market.

• Scale and Market Rank: Following the 2024 Marcum acquisition, CBIZ now ranks as the 7th largest accounting firm in the U.S. (based on 2025 rankings), giving them a massive resource advantage over smaller regional firms.
• Acquisition-Fueled Growth: The Marcum integration was a monumental, value-creating move, contributing to a 66.4% year-to-date revenue increase in the first half of 2025. This strong M&A track record is a core competency.
• Financial Discipline: The business model generates robust free cash flow, which is crucial for their deleveraging plan. They are targeting a reduction of their pro forma net leverage ratio to 2.00x-2.25x within 24 months of the Marcum deal close.
• Holistic Advisory Model: Their integrated service offering across financial, benefits, and insurance services means they can address a client's entire risk and growth profile from one source, which is a major competitive differentiator.

CBIZ, Inc. (CBZ) How It Makes Money

CBIZ, Inc. primarily makes money by providing essential, non-discretionary professional services-accounting, tax, advisory, benefits, and insurance-to the US middle-market. This model relies on deep client relationships and a high volume of recurring, fee-based work, which provides a stable revenue base.

CBIZ, Inc.'s Revenue Breakdown

Following the strategic Marcum acquisition, CBIZ's revenue profile has shifted significantly, with Financial Services now dominating the top line. The company's full-year 2025 revenue is projected to be in the range of $2.8 billion to $2.95 billion, a substantial jump driven by that acquisition and organic growth.

The Financial Services segment, which includes accounting, tax, and advisory, is the main engine, surging 91.5% year-over-year in the first quarter of 2025. Benefits and Insurance Services, covering areas like employee benefits and property & casualty insurance, is a steady, lower-growth component, increasing by 4.2% in Q1 2025. National Practices, which houses specialized services like valuation and litigation support, saw a 14.2% decline in the same period, reflecting economic uncertainty impacting non-recurring project work.

Business Economics

The core of CBIZ's economic stability is its high proportion of recurring revenue, which is a major quality-of-earnings indicator. About 77% of the company's total revenue comes from services that clients need every year, like tax compliance and annual audits, not one-off projects. This sticky business model translates directly into a strong client retention rate of roughly 90%.

• Pricing Strategy: CBIZ uses a value-based pricing model, charging fees based on the complexity, expertise, and time required for professional services, rather than a simple commodity price. They also help clients with their own pricing strategies, including tariff impact modeling and transfer pricing (setting prices for transactions between related companies).
• Operating Leverage: The professional services model has strong operating leverage, meaning a high percentage of new revenue flows through to profit once fixed costs (office space, core IT) are covered. The Marcum acquisition significantly enhanced this, driving Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) up 100.0% in Q1 2025.
• Acquisition Engine: Growth is fueled by a consistent 'tuck-in' acquisition strategy, buying smaller, high-quality regional firms to expand service lines and geographic reach. The 2025 Marcum deal is a prime example of a transformative acquisition that instantly scaled the Financial Services segment.

You can see how this focus on stability and growth aligns with their long-term goals in their core principles: Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

CBIZ, Inc.'s Financial Performance

The company's financial health as of late 2025 is robust, largely exceeding historical performance due to the strategic growth initiatives. The key is watching the adjusted metrics, as they strip out one-time costs from acquisitions.

• Revenue Outlook: Full-year 2025 total revenue is guided to be between $2.8 billion and $2.95 billion. Here's the quick math: hitting the midpoint of $2.875 billion would represent a massive year-over-year growth rate compared to the 2024 annual revenue of $1.81 billion.
• Profitability: Adjusted EBITDA is projected to be between $450 million and $456 million for the full year 2025. This margin strength shows the successful integration of acquired firms and the high-margin nature of advisory services.
• Earnings Per Share (EPS): The full-year 2025 Adjusted Diluted EPS is forecast in the range of $3.60 to $3.65. This is the number to track, as it gives you the clearest picture of shareholder value creation after normalizing for non-cash items.
• Cash Flow: Management has consistently emphasized continued strong cash flow generation, which is crucial for funding both the acquisition pipeline and share repurchase programs. They repurchased approximately 1 million shares for $71 million in Q2 2025, a clear sign of confidence in their valuation.

What this estimate hides is the potential for economic headwinds to further impact non-recurring service lines, but still, the high recurring revenue base provides a solid buffer.

CBIZ, Inc. (CBZ) Market Position & Future Outlook

CBIZ, Inc. is strategically positioned to capture a larger share of the fragmented U.S. middle-market, primarily driven by the transformative Marcum acquisition. The firm is projecting a strong 2025, with full-year revenue expected to land between $2.8 billion and $2.95 billion, solidifying its standing as a national, integrated professional services leader.

Competitive Landscape

In the mid-cap professional services arena, CBIZ competes by offering a unique blend of accounting, tax, benefits, and insurance services, focusing on the middle-market. Here's the quick math on how CBIZ stacks up against two major competitors based on their 2025 revenue projections, creating a relative market share view of this segment.

Opportunities & Challenges

You need to map near-term market dynamics to clear actions, so let's look at where the money is moving and where the potholes are. The biggest opportunity is defintely the integration of the Marcum deal, but new tax law changes are a huge tailwind for your clients.

Industry Position

CBIZ's position is that of a scaled, specialized generalist-a critical partner to the U.S. middle-market (businesses with $10 million to $1 billion in revenue). The Marcum acquisition propelled the firm to the 7th largest accounting firm in the United States by pro forma revenue, an impressive jump. This scale allows CBIZ to compete with the Big Four accounting firms in local markets, especially in core accounting and tax services, without losing its middle-market focus.

• The firm is now the largest accounting services provider outside the Big 4 in key U.S. markets like New York.
• Management is focused on margin expansion, targeting an Adjusted EBITDA in the range of $450 million to $456 million for 2025.
• The core strength is its ability to cross-sell services-a client starting with tax can be moved to benefits, insurance, and advisory services, creating a sticky, high-value relationship.
• The firm's strategic focus on the middle-market is resilient because these essential, repetitive services are less cyclical than the large-scale, discretionary restructuring work FTI Consulting often handles.

To really understand the financial mechanics behind this growth, you should check out Breaking Down CBIZ, Inc. (CBZ) Financial Health: Key Insights for Investors. It's a good next step to see the balance sheet impact of that Marcum deal.