Two late mergers helped US consolidator CBIZ exceed its target
of adding more than $100 million (€75.3 million) in revenue last
year.

In December, the firm acquired New York City-based firm Mahoney
Cohen & Company, adding about $55 million in revenue. This was
followed by the acquisition of New England-based firm Tofias, which
will contribute about $38 million.

CBIZ is a tax and advisory firm associated with independent CPA
firm Mayer Hoffman McCann, which secured the audit arms of Tofias
and Mahoney Cohen & Company.

The two acquisitions were significant not just from a revenue
perspective but also geographically, CBIZ east region managing
director Saul Reibstein said.

“We now have penetration into the north-east side of the US with
two very highly regarded firms, both of which are in highly
critical markets where we can enhance our client services,” he
said.

Reibstein said increasing the revenue base of CBIZ through
acquisition was an important strategic outcome for the firm.

This year, CBIZ will continue to acquire firms that are
important geographically.

“Firstly, we want to strengthen existing CBIZ offices and
secondly go into cities where we don’t already have a presence,”
Reibstein said. “Examples of strengthening existing positions
include Washington DC, Atlanta, Georgia, South Florida and San
Francisco. Examples of entry into markets where we don’t have
significance or any presence would be the Pacific North West – the
Seattle and Portland area – as well as the great state of
Texas.”

The International Accounting Bulletin understands CBIZ
is in discussions with about four or five different firms.

Organic strategy

In relation to organic growth, Reibstein noted the firm has
begun to see a slowdown in regular client schedules and special
projects, although he predicts the credit crisis will have no
significant side effects.

“Our budgets for 2009 reflect a more modest rate of growth than
we experienced in 2007/2008 but our budget and forecast for 2009
still includes a growth component [for] both revenue and bottom
line,” he said.

CBIZ and Mayer Hoffman McCann are both members of Kreston
International.

Nicola Maher