CBIZ (CBZ) risk factors, FY2024 10-K

Other

1. 01Payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible
2. 02Our business could be adversely affected if Marcum does not perform to our expectations or we underestimate the liabilities we are assuming
3. 03We are dependent on the services of our executive officers, and other key employees, the loss of any of whom may have a material adverse effect on our business, financial condition and results of operations
4. 04Restrictions imposed by independence requirements and conflict of interest rules, as well as the nature and terms of our current Administrative Service Agreements, limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients
5. 05Our goodwill and other intangible assets could become impaired, which could lead to material non-cash charges against earnings and a material impact on our results of operations and financial condition
6. 06Certain liabilities resulting from acquisitions are estimated and could lead to a material impact on our results of operations
7. 07We may fail to realize the anticipated benefits of acquisitions, or they may prove disruptive and could result in the combined business failing to meet our expectations
8. 08Recent SEC and PCAOB sanctions against Marcum may adversely impact our performance and reputation
9. 09If we are unable to implement and maintain effective internal control over financial reporting following the Transaction, we may fail to prevent or detect material misstatements in our financial statements, in which case investors could lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline
10. 10We may not be able to acquire and finance additional businesses, which could limit our ability to pursue our business strategy
11. 11We will incur transaction, integration, and restructuring costs in connection with our acquisition program
12. 12Governmental regulations and interpretations are subject to changes, which could have a material adverse effect on our financial condition
13. 13Changes in the United States healthcare environment, including new healthcare legislation, may adversely affect the revenue and margins in our healthcare benefit businesses
14. 14We are subject to risks relating to processing customer transactions for our payroll and other transaction processing businesses
15. 15Cyberattacks or other security breaches involving our computer systems or the systems of one or more of our vendors could materially and adversely affect our business
16. 16We are subject to risk as it relates to software that we license from third parties
17. 17We are reliant on information processing systems and any failure or disruptions of these systems could have a material adverse effect on our business, financial condition and results of operations
18. 18We could be held liable for errors and omissions
19. 19The business services industry is competitive and fragmented. If we are unable to compete effectively, our business, financial condition and results of operations could be negatively impacted
20. 20Given our levels of share-based compensation, our tax rate may vary significantly depending on our stock price
21. 21Rapid technological changes could significantly impact our competitive position, client relationships and operating results and our ability to realize the anticipated benefits of the Transaction
22. 22Climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating costs
23. 23The widespread outbreak of a communicable illness or any other public health crisis could adversely affect our business, financial condition and results of operations
24. 24We require a significant amount of cash for interest payments on our debt and to expand our business as planned
25. 25Terms of the 2024 Credit Facilities could adversely affect our ability to run our business and/or reduce stockholder returns
26. 26Our failure to satisfy covenants in our debt instruments could cause a default under those instruments
27. 27Our increased leverage following the Transaction may adversely impact our business
28. 28We may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock
29. 29The significant number of shares issuable as the stock consideration in the Transaction may adversely impact our stock price
30. 30The future issuance of additional shares could adversely affect the price of our common stock
31. 31There is volatility in our stock price
32. 32The price of our common stock could be adversely impacted if we do not perform to expectations following the Transaction