- Demand for audit, consulting, tax, and legal services experience strong growth as clients seek for comprehensive advice from RSM
- ESG services rise as middle-market businesses prepare for sweeping regulatory change in 2024
- Strong growth across the region supported by addition of new member firm in Germany
- RSM’s headcount in Europe increases to more than 13,000 experts
RSM, the leading provider of assurance, tax and consulting services to middle market businesses, has today announced annual revenue growth of 36% in Europe to reach US$1.7bn*.
In Europe, RSM grew by 36% compared to 2022 as a result of sustained development across the region and the addition of RSM Ebner Stolz in Germany.
RSM’s consulting services grew by 49% with experts supporting businesses through an ongoing period of change. providing solutions regarding business and digital transformation, risk and governance, and deal services.
Middle-market businesses across Europe have been preparing for increased regulatory demands. This has been driven mainly by the EU’s Corporate Sustainability Reporting Directive (CSRD), its Carbon Border Adjustment Mechanism (CBAM), and the IFRS’ non-financial reporting standards. Organisations are seeking experts’ advice to establish a strategy building on their purpose and culture, so that their activities in response to regulatory change are not only a compliance exercise, but are also regarded as genuine value drivers.
With the implementation of a Global Minimum Tax on the horizon for large multinationals, the year saw a 48% spike in demand for tax services. RSM believes this demand will be sustained in Europe as businesses prepare for the implementation of Pillar Two of the Global Minimum Tax, which brings change to the overall tax revenues certain global businesses will need to pay.
RSM Ebner Stolz’s focus on corporate tax advisory of dynamic and internationally active middle-market companies contributed to RSM’s strong performance in Europe. Most notably, its experts supported leaders to plan in response to evolving anti-tax avoidance rules.
Amongst its other service lines, RSM’s accounting and audit practices in Europe grew by 26% as regulatory demands also place pressure on businesses to have more stringent audits in place, supported by a growing demand for international expertise from large multinationals. And, as nations and businesses seek to address the climate crisis, member firms experienced growing demand for Environmental, Social and Governance (ESG) services that cut across service lines.
Gregor Schmidt, Regional Leader for Europe at RSM, commented:
“Europe has been a driving force in recent regulatory change. The EU’s introduction of regulations such as CSRD and CBAM require significant preparation by European businesses and those trading with Europe. European regulations will continue to make an impact over the year ahead.
“Early preparation is critical and RSM in Europe has been working in partnership with business leaders throughout this period of change, providing middle-market companies with confidence as we head into a period of heightened scrutiny both on financial and ESG-related impacts.”
RSM’s strong performance in Europe comes as RSM has announced double-digit growth in global revenues to US$9.4bn.
Global fee income for accounting and audit services rose by 15% to US$3.6bn, while RSM’s tax revenues jumped by 17% to US$2.6bn. Consulting revenue totalled US$3.1bn, representing a 16% increase on 2022.
Since the launch of RSM’s 2030 Global Strategy at the start of 2023, over the past 12 months RSM has established the critical building blocks for ongoing growth, transformation and change, focusing on four Strategic Drivers – People, Clients, Technology and Solutions. With a 13% increase in global headcount, RSM is dedicated to developing an unrivalled, inclusive culture and talent experience, believing investment in both people and technology to be critical to sustained growth and delivering rich, personalised client experiences. Global technology and digital investment increased four-fold over 2023 compared to 2022, over and above the significant technology investments being made by RSM member firms in all territories.
Jean Stephens, CEO of RSM International, said: “This year’s financial results further cement our status as the leading global provider of professional services to the middle market. Powered by our 2030 Global Strategy - Taking Charge of Change – RSM has worked collaboratively as a global organisation more than ever before to innovate and better serve clients across borders.
“With an emphasis on the generation and sharing of insight, streamlining the efficiencies and effectiveness of service provision and building connectivity through an enhanced global digital infrastructure, RSM is focused on providing innovative and valuable human insights powered by technology.”
Looking ahead
The first key milestone of 2024 for RSM is the launch of its evolved global brand – with new visuals and re-energised messaging designed to be more representative of the breadth and depth of the organisation today and to better reflect RSM’s purpose - to instil confidence in a world of change. Continuing to hero their people as the central pillar of their brand, RSM has introduced a new creative device taken from the DNA of its logo. Named the ‘Pattern of Progress’, the device reflects the journey of discovery RSM undertakes to build dynamic and compelling solutions to individual client needs. It symbolises forward movement and the attainment of future goals in an ever-changing complex world, reflecting RSM’s focus on the issues that matter most to its clients and people.
Among the technological developments underway, January 2024 will see the launch of RSM Luca, the organisation’s digital audit ecosystem, integrating sophisticated technologies and efficient processes to better enable agile, insight-driven, tech-forward audits tailored to client’s unique business environments.
RSM is also committed to significant additional investment over the year in sustainability frameworks and initiatives, and the evolution of independence systems and inspections procedures to ensure quality and responsible business practices remain central to RSM’s service provision across all areas.
Jean Stephens added: "Over 2024, we will undertake a vast number of transformative projects as we continue to harness our global strength and build maximum relevance with our key stakeholders. These financial results support our solid foundation for even greater future growth, ensuring RSM goes from strength to strength as we move forward with confidence, commitment, and energy.”