Grant Thornton set for $5bn CBIZ buyout in landmark accountancy deal
Grant Thornton is set to buy New York-listed management consulting firm CBIZ in a proposed $5bn deal, one of the largest transactions of its kind in the accountancy sector, creating the fifth-largest professional services firm in the US.
CBIZ, the only audit firm listed on the US stock market, is set to be acquired by Grant Thornton Advisors’ backers, private equity firm New Mountain Capital, after a year of record-low share price.
Under the terms of this all-cash 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 last year, CBIZ’s share price has been down nearly 40 per cent, hitting a low of $24.29 in April. But following this transaction, expected to close in the fourth quarter of 2026, CBIZ will cease to be publicly traded and operate as a private company.
The acquisition will propel Grant Thornton past its mid-market competitors, establishing the combined entity as the fifth-largest professional services, tax, and advisory provider in the US, with a footprint spanning more than 20 countries and generating nearly $7.5bn in revenue.
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 this deal, CBIZ’s Benefits and Insurance Services segment will be separated into a new, stand-alone entity, which New Mountain Capital will also back.
Private equity dominates the industry
This deal comes as its UK arm became the largest UK professional services business to accept external equity investment after agreeing to be acquired by private equity firm Cinven. On Tuesday, it was revealed that Grant Thornton’s UK equity partners received a £35.2m payout after the large external stake.
Private equity investment in the accountancy sector has surged in recent years. 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. Its chief executive, Nimesh Shah, told City PM the firm ‘killed’ the traditional partnership model a decade ago with this move.