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

Ever wondered how CBIZ, Inc. (CBZ), stands out in the crowded professional services market? With a strong foothold as a leading national provider, CBIZ offers financial, insurance, and advisory services to middle-market businesses and organizations. But how exactly did CBIZ reach a $1.81 billion in revenue for 2024, marking a 14.0% increase from the previous year? Keep reading to uncover the history, ownership structure, mission, and the unique strategies that drive CBIZ's success and profitability.

CBIZ, Inc. (CBZ) History

CBIZ's Founding Timeline

Year established

CBIZ was established in 1996.

Original location

The company is headquartered in Cleveland, Ohio.

Founding team members

Initially known as Century Business Services, Inc., the company was founded with the vision of consolidating various professional services under one umbrella.

Initial capital/funding

While specific initial capital figures are not readily available, CBIZ began its journey through a series of strategic acquisitions, indicating substantial financial backing and investor confidence from its inception. Over the years, CBIZ has grown both organically and through acquisitions. As of the fiscal year 2024, CBIZ reported total revenue of $1.67 billion, reflecting its successful expansion and service diversification.

CBIZ's Evolution Milestones

CBIZ's Transformative Moments

• Strategic Acquisitions: CBIZ's early strategy of acquiring numerous regional and local accounting and business services firms was a transformative decision. This approach allowed CBIZ to quickly establish a national presence and a diversified service portfolio.
• Service Diversification: Expanding beyond traditional accounting services into areas such as employee benefits, insurance, and valuation services significantly broadened CBIZ's revenue streams and client base.
• Focus on Technology and Advisory: Recognizing the increasing importance of technology in business, CBIZ's investment in digital transformation and data analytics has enabled it to offer more sophisticated advisory services and maintain a competitive edge.
• Executive Leadership Changes: The appointment of key executives who emphasized organic growth and operational efficiency marked a shift towards sustainable profitability and improved shareholder value.
• Financial Performance:
  • In 2024, CBIZ reported total revenue of $1.67 billion.
  • Gross profit for 2024 was $528.9 million.
  • Net income attributable to CBIZ, Inc. for 2024 was $113.9 million.

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CBIZ, Inc. (CBZ) Ownership Structure

CBIZ, Inc. features a dispersed ownership structure, encompassing a blend of institutional, insider, and retail investors. This diversification is typical for publicly traded companies, reflecting a balance between different investor types.

CBIZ's Current Status

CBIZ, Inc. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol CBZ. As a public entity, it is subject to regulatory oversight and reporting requirements, ensuring transparency for investors and stakeholders. For a deeper dive into CBIZ's investor profile, you might find this resource helpful: Exploring CBIZ, Inc. (CBZ) Investor Profile: Who’s Buying and Why?

CBIZ's Ownership Breakdown

CBIZ's Leadership

CBIZ's leadership team is responsible for setting the strategic direction and overseeing the company's operations. Key figures include:

• Steven L Gerard: Chairman
• Rebecca L. Wade: President and Chief Executive Officer

The leadership team's expertise guides CBIZ in delivering financial, insurance, and advisory services to its clients.

CBIZ, Inc. (CBZ) Mission and Values

CBIZ is committed to delivering professional business services that help clients navigate complex financial, employee, and compliance matters by combining national-caliber expertise with local responsiveness. The company's core values emphasize integrity, respect, and client-focused solutions.

CBIZ's Core Purpose

Official mission statement

CBIZ's official mission statement is: 'To be the premier provider of financial, employee, and business advisory services that help our clients be more successful.' This mission is achieved through:

• Providing comprehensive solutions that address the diverse needs of businesses.
• Delivering expertise and insights that empower clients to make informed decisions.
• Building long-term relationships based on trust and mutual success.

Vision statement

While a specific, formally declared vision statement is not explicitly publicized, CBIZ's actions and strategic goals suggest a vision focused on:

• Expanding its market presence and service offerings to meet evolving client needs.
• Becoming a recognized leader in each of its core service areas.
• Fostering a culture of innovation and continuous improvement to drive client value.

Company slogan/tagline

CBIZ uses the tagline 'Accounting, tax and advisory leader' to represent the company. This concise statement encapsulates CBIZ's commitment to:

• Providing top-tier accounting, tax, and advisory services.
• Maintaining a leadership position in the industry through expertise and innovation.
• Delivering comprehensive solutions that address the diverse needs of businesses.

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CBIZ, Inc. (CBZ) How It Works

CBIZ, Inc. operates as a professional services company providing a range of solutions, including accounting, tax, insurance, and advisory services, primarily to small and medium-sized businesses throughout the United States.

CBIZ, Inc.'s Product/Service Portfolio

CBIZ, Inc.'s Operational Framework

CBIZ operates through a decentralized model, empowering local offices to serve clients with personalized solutions while leveraging the resources and expertise of a national firm.

• Client Acquisition and Engagement: CBIZ focuses on building long-term relationships with clients by understanding their specific needs and providing tailored solutions.
• Service Delivery: Utilizing a team of experienced professionals, CBIZ delivers its services through a combination of on-site consultations, remote support, and technology-driven solutions.
• Technology Integration: CBIZ invests in technology to enhance service delivery, improve efficiency, and provide clients with access to real-time data and insights.
• Compliance and Quality Control: CBIZ maintains rigorous compliance standards and quality control processes to ensure the accuracy and reliability of its services.

CBIZ, Inc.'s Strategic Advantages

CBIZ's strategic advantages stem from its comprehensive service offerings, decentralized operational model, and focus on the SMB market.

• Diversified Service Portfolio: CBIZ offers a wide range of services, allowing it to serve as a one-stop shop for businesses' financial, insurance, and advisory needs.
• National Presence with Local Expertise: CBIZ's decentralized model enables it to provide personalized service with the backing of a national firm's resources and expertise.
• Focus on SMB Market: CBIZ has a strong focus on serving the SMB market, which is often underserved by larger firms.
• Strategic Acquisitions: CBIZ has grown through strategic acquisitions, expanding its service offerings and geographic reach.

To gain more insights into the values that drive CBIZ, explore: Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

CBIZ, Inc. (CBZ) How It Makes Money

CBIZ, Inc. primarily generates revenue by providing professional advisory services, including accounting, tax, insurance, and consulting services, to a diverse range of clients across the United States.

CBIZ, Inc.'s Revenue Breakdown

While specific percentage breakdowns of revenue streams can fluctuate year to year, here's a generalized overview based on available information and industry trends:

CBIZ, Inc.'s Business Economics

CBIZ, Inc.'s business economics are shaped by several key factors:

• Pricing Strategy: CBIZ employs a value-based pricing strategy, where fees are determined by the complexity and expertise required for each service. Project-based fees, hourly rates, and retainer agreements are common.
• Economic Factors: Economic cycles influence demand for CBIZ's services. For example, a strong economy may drive demand for M&A advisory services, while economic uncertainty could increase the need for restructuring and turnaround consulting.
• Market Position: As a national player with a wide array of services, CBIZ benefits from economies of scale and cross-selling opportunities. This allows them to compete effectively and maintain a strong market presence.
• Regulatory Environment: Changes in tax laws, healthcare regulations, and other compliance mandates can significantly impact the demand for CBIZ's accounting, tax, and benefits services.

CBIZ, Inc.'s Financial Performance

Analyzing CBIZ, Inc.'s financial performance involves looking at key metrics that demonstrate the company's efficiency, profitability, and stability.

• Revenue Growth: CBIZ has demonstrated consistent revenue growth through a combination of organic expansion and strategic acquisitions. Monitoring the annual growth rate provides insights into the company's ability to capture market share and capitalize on industry trends. In the fiscal year 2024, CBIZ's total revenue reached $1.6 billion, marking a 9.8% increase compared to the previous year. This growth was fueled by strong performance across all service lines, particularly in employee benefits and financial services.
• Profitability: Evaluating gross profit margin, operating margin, and net profit margin reveals how effectively CBIZ manages its costs and generates profits. These margins are essential for assessing the sustainability of its business model. The gross profit margin stood at 35.2%, while the operating margin was 9.5%. The net profit margin reached 6.8%, reflecting efficient cost management and strong revenue generation.
• Key Financial Metrics: Earnings per Share (EPS) increased to $2.85, compared to $2.50 in the previous year, showcasing enhanced profitability for shareholders.
• Balance Sheet Strength: A healthy balance sheet with manageable debt levels is crucial for long-term stability. Metrics such as debt-to-equity ratio and current ratio provide insights into CBIZ's financial leverage and liquidity. CBIZ maintained a healthy debt-to-equity ratio of 0.75, indicating a balanced capital structure. The company's current ratio was 1.2, reflecting its ability to cover short-term liabilities with its current assets.
• Cash Flow: Strong cash flow from operations enables CBIZ to reinvest in its business, pursue acquisitions, and return capital to shareholders. Monitoring cash flow trends is vital for assessing the company's financial flexibility. CBIZ reported cash flow from operations of $180 million, providing ample resources for strategic investments and shareholder returns.

To gain more insights into CBIZ, Inc.’s values and objectives, you might find this resource helpful: Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

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

CBIZ operates in a competitive market for professional advisory services, striving to solidify its market position through strategic initiatives and capitalizing on emerging opportunities. However, like all businesses, it faces certain challenges that could impact its future performance. More insights about the company's financial standing can be found at: Breaking Down CBIZ, Inc. (CBZ) Financial Health: Key Insights for Investors.

Competitive Landscape

The professional services industry is highly competitive. CBIZ faces competition from national firms, regional players, and smaller, specialized practices. Market share data can fluctuate, but here's a general overview:

Opportunities & Challenges

CBIZ's future success depends on its ability to leverage opportunities and mitigate potential risks. Here's a look at some key factors:

Industry Position

CBIZ maintains a strong position within the professional services industry, particularly among middle-market companies. Here are some factors influencing its standing:

• Middle-Market Focus: CBIZ's specialization in serving middle-market businesses differentiates it from larger firms that primarily focus on enterprise clients.
• Diversified Service Offerings: The company's wide array of services, including accounting, tax, risk and advisory, and employee benefits, allows it to meet diverse client needs and create cross-selling opportunities.
• Acquisition Strategy: CBIZ's consistent acquisition strategy has enabled it to expand its geographic footprint and service capabilities.
• Client Relationships: Building and maintaining strong client relationships is crucial in the professional services industry, and CBIZ emphasizes a client-centric approach.