CBIZ Flags Another $15 Million In One-Time Legal Costs Missing From Monday's Results
The extra expense would cut net income by about $10.5 million after tax, while adjusted profit measures stay unchanged, the company said.
CBIZ, the accounting and advisory firm that Grant Thornton has agreed to buy, said Thursday its quarter-end review found about $15 million in one-time legal expenses that were left out of the third-quarter results it released Monday. The company expects the charge to lower net income by about $10.5 million after tax.
Net income down, adjusted figures untouched
CBIZ said it plans to book the expense in its quarterly report on Form 10-Q for the period ended September 30, 2026. The charge will not change adjusted net income, adjusted diluted earnings per share or adjusted EBITDA, because transaction-related legal and professional costs are added back in those measures.
Monday's release had reported net income of $47 million and earnings per share of $0.79 under standard accounting. Those figures predate the added costs.
CBIZ said it expects to share the new information with prospective debt investors, as part of a possible financing tied to Grant Thornton's pending purchase of the company. The company said the information had not yet been publicly reported.
A buyout financed with junk bonds
CBIZ provides accounting, tax, advisory, benefits, insurance and technology services to middle-market businesses. Its Financial Services group made up 83.4% of 2025 revenue, according to its annual report.
A Grant Thornton affiliate agreed on July 29 to buy CBIZ for $55.00 per share in cash, an enterprise value of $5.0 billion. Grant Thornton is marketing junk bonds to help fund the deal, and S&P Global Ratings lists $1.75 billion of proposed U.S. dollar senior secured notes.
CBZ shares traded at $54.87, up 0.04%, in Thursday trading, just under the $55.00 cash price.
Closing targeted for the fourth quarter
The deal is expected to close in the fourth quarter, subject to a shareholder vote and regulatory approvals. The 10-Q for the quarter ended September 30 will carry the added legal expense.
The 10-Q for the September quarter is where the roughly $15 million charge will be formally booked.
Sources
- 8-K Filing — CBIZ, Inc. (CBZ) — SEC EDGAR
- Grant Thornton Advisors LLC's Proposed Senior Sec | S&P Global Ratings — spglobal.com
- Grant Thornton Markets Junk Bonds to Fund $5 Billion Acquisition — news.bloomberglaw.com
- CBIZ Reports Third-Quarter and Nine Months Ended September — globenewswire.com
