Dilution ConcernsThe deal is expected to be slightly dilutive in both CY25 and CY26, raising concerns for investors looking for immediate earnings accretion.
Integration RisksThere are potential post-merger integration risks, as Paycor is easily Paychex’s largest acquisition ever.
Margin DifferentialPaycor's margin profile is meaningfully lower than that of Paychex, presenting challenges in achieving expected synergies.