A Shareholder Proposal · CBIZ, Inc. (NYSE: CBZ)
Reference Equity is calling on CBIZ to suspend share repurchases and recommit to the acquisition strategy that built the company.
The Case
CBIZ has grown over decades through a disciplined, repeatable program of accretive acquisitions.
Today, the business’s acquisition strategy has been paused in favor of share repurchases.
M&A is an essential aspect of CBIZ’s business model: acquisitions grow CBIZ’s talent pool, add advisory capabilities, and drive margin expansion via scale.
CBIZ’s status as an acquirer of choice in the industry is now jeopardized by the company’s overleveraged balance sheet and prioritization of buybacks over reinvestment.
Raise equity as an acquisition facility to immediately recapitalize the balance sheet and reactivate the M&A pipeline.
This strategy will simultaneously return CBIZ to growth, deleverage the balance sheet, and re-establish the business as a credible acquirer in a consolidating market.
What We’re Asking
CBIZ shares are undervalued, but repurchases expose earnings to interest-rate risk and weaken the company’s competitive position. More attractive reinvestment opportunities exist.
Raising an acquisition facility to finance near-term M&A will return CBIZ to growth and simultaneously deleverage the balance sheet.
A growing, well-capitalized CBIZ will lead consolidation of a fragmented industry, turn AI disruption into a differentiator, and generate substantial shareholder value.
“In addition to being value-creating for shareholders, we believe CBIZ’s capital allocation approach must also reinforce the company’s competitive position and support its long-term strategy.”Ryan Bunn · Portfolio Manager, Reference Equity
The Materials
The full case, from a one-page summary to the complete presentation.