Grant Thornton is set to acquire New York-listed management consulting firm CBIZ (CBZ) in a proposed $5bn all-cash deal, one of the largest transactions in the accountancy sector’s history.
The deal, backed by private equity firm New Mountain Capital, would create the fifth-largest professional services, tax, and advisory provider in the United States.
CBIZ holds the distinction of being the only audit firm currently listed on the US stock market, and has endured a turbulent year marked by record-low share prices.
Under the terms of the proposed transaction, CBIZ shareholders will receive $55 per share, representing a 54 per cent premium over the company’s 30-day average share price.
Over the past year, CBIZ’s share price fell by nearly 40 per cent, hitting a low of $24.29 in April, making the premium offered particularly significant for long-suffering shareholders.
The transaction is expected to close in the fourth quarter of 2026, at which point CBIZ will cease to be publicly traded and will operate as a private company.
The combined entity will span more than 20 countries and generate nearly $7.5bn in revenue, significantly outpacing Grant Thornton’s mid-market competitors in the professional services space.
Jim Peko, chief executive of Grant Thornton Advisors, said: “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.”
Jerry Grisko, president and chief executive officer of CBIZ, added: “Joining Grant Thornton Advisors accelerates the realisation 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.”
As part of the deal’s structure, CBIZ’s Benefits and Insurance Services segment will be separated into a new stand-alone entity, which New Mountain Capital will also back separately.
The US deal follows significant activity in Grant Thornton’s UK operations, where the firm became the largest UK professional services business to accept external equity investment after agreeing to be acquired by private equity firm Cinven.
Grant Thornton’s UK equity partners received a £35.2m payout following that transaction, underlining the growing appetite among private equity investors for stakes in established accountancy businesses.
Private equity investment across the accountancy sector has surged considerably in recent years, reshaping the traditionally partnership-based structure of major audit and advisory firms.
City-based Blick Rothenberg is widely recognised as the first major UK accountancy firm to receive private equity backing, following HgCapital’s investment in July 2016.
Nimesh Shah, chief executive of Blick Rothenberg, told City AM the firm “killed” the traditional partnership model a decade ago with that move, a statement that now resonates across an industry increasingly embracing institutional capital.