The Deal in Plain Numbers
A company called Grant Thornton is buying another one called CBIZ for $5 billion. All cash.
Jerry Grisko, the president and CEO of CBIZ, said, "a historic combination with a complementary cultural and strategic fit."
Why This Deal Happened
In 2024, Grant Thornton sold a substantial portion of itself to New Mountain Capital, a private equity firm, and has pursued multiple takeovers since then. Over the past few years, large amounts of capital from private equity have flowed into the accounting industry.
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Meanwhile, Reference Equity, which owns shares in CBIZ, had been pushing the company to cancel a stock buyback program and instead focus on buying other businesses to boost its falling stock value.
Ryan Bunn, a portfolio manager at Reference Equity, said: "I believe shareholders would have benefited from CBIZ being an industry consolidator long-term." He added, "I am pleased, though, that the market now recognizes the value of the business, even if it took a private bidder."
A major factor in this transaction is the increasing interest from private equity in professional services companies that have steady cash flows and recurring income. Grant Thornton's existing backing from New Mountain Capital and its recent international investments position the combined firm to challenge the Big Four accounting networks, a trend that is reshaping the industry.
This deal marks another milestone in the consolidation of the accounting industry, where mid-sized firms are increasingly turning to private equity to gain scale. With New Mountain Capital's support, Grant Thornton has been aggressively expanding its global footprint, investing in affiliates across Europe and the Pacific. CBIZ, which had faced activist pressure from Reference Equity to alter its strategy, now becomes part of that larger growth story. The combination creates a stronger competitor to the Big Four, offering a broader range of services from audit and tax to benefits and insurance consulting.
What Happens Next for the Combined Firm
New Mountain Capital, which holds an existing stake in Grant Thornton, is putting additional money into the deal and will help create a separate entity for CBIZ's benefits and insurance operations.
Grant Thornton's US arm has invested capital in the practices of its global affiliates located in Belgium, Brazil, France, New Zealand, Poland, and Spain.
Ryan Bunn said: "The new private equity owner will bring capital to the business, allowing the combined entity to continue to pursue M&A and consolidate the industry."
The accounting industry has seen a wave of private equity investment as firms seek scale to compete with the dominant Big Four. Grant Thornton's sale of a stake to New Mountain Capital in 2024 enabled it to pursue acquisitions aggressively, including investments in affiliates across Europe and the Pacific. This deal with CBIZ continues that strategy, creating a combined entity with $7.5 billion in revenue.
For CBIZ shareholders, the deal provides an immediate and substantial return, avoiding the uncertainty of a prolonged turnaround under activist pressure.
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