01/23/2023 | Press release | Distributed by Public on 01/24/2023 03:40
RSM, the leading provider of assurance, tax and consulting services to middle market businesses, has today announced annual revenues in Europe of over USD $1.25bn, up 17% on the previous year.
RSM's consulting services grew by 20% in 2022 compared to 2021 figures. As labour shortages ripple across Europe, RSM Member Firms in the region saw heightened demand for managed services and outsourcing solutions, including HR consultancy and payroll support.
Increased M&A activity across Europe saw RSM firms advise on 624 transactions in the 12 months ended June 2022, with the technology, media & telecoms sector leading the charge at 151, followed by engineering and manufacturing at 113, and advisory in other sectors, contributing to a strong year for dealmaking. Providing support to businesses with M&A and related activity led to a 58% increase in financial due diligence revenues in Europe.
With digital transformation at the fore of many businesses' priorities, RSM firms in Europe have also attributed revenue growth this year to the increased demand for support in digital transformation projects, the implementation of IT services and cyber security response and mitigation.
Tightening regulations in European nations, including those focused on Environmental, Social and Governance (ESG) factors across the EU, have also intensified the compliance burden for many of RSM's clients in the region. For example, helping businesses prepare for the EU Corporate Sustainability Reporting Directive (CSRD) led to higher demand for RSM's consulting services.
In addition, RSM member firms in Europe recorded a 18% rise in audit, 16% across tax services, as well as a 12% increase in accounting services.
Gregor Schmidt, Regional Leader for Europe at RSM, commented:
"Despite significant disruption in Europe, including the war in Ukraine with skyrocketing energy prices, global supply chain issues, and the ongoing labour crisis, European businesses have their sights firmly focused on future growth. We have seen higher demand for consulting services as businesses in the region face fresh headwinds stemming from political and economic unpredictability. This accelerated pace of change has resulted in businesses embracing digital-first and data-rich solutions, outsourcing key functions to solve talent gaps without disruption, and to not only elevate their awareness of ESG strategies, but to also take positive action."
Despite the labour shortages within European nations, RSM member firms across Europe have collectively increased their headcount by over 900 as they continue to drive learning and development programmes, with a particular focus on colleagues who are early on in their careers.
Gregor Schmidt continued: "We are very proud to have grown our headcount this year, which we firmly believe is in part due to our commitment to supporting our people during the early years of their careers. Initiatives like the RSM Forward Sprint and RSM Academy support the development of our people who have a few years' experience, have really set our member firms in Europe apart as employers."
Launched this month, RSM's 2030 Global Strategy outlines a major multi-year growth and transformation programme that targets 100% growth in revenue by 2030. Through the Strategy, RSM will make increasing use of global, digital delivery models, enhanced insight generation and wider use of automation, big data, machine learning and artificial intelligence to support businesses through change.
RSM's Strategy will further unite its firms under common international methodologies and structures that enable it to continue to drive service quality and promote responsible business practice, whilst constantly enhancing agility and innovation. With an ever-increasing global client base of growth-orientated, internationally-minded companies, RSM remains focused on ensuring they receive exceptional client-service, expert human insight powered by technology, and compelling, tailored solutions.
The strategy will see significant investment in talent and will transform RSM into a seamless global organisation, with teams, culture, governance and processes actively aligned across borders to empower both clients and RSM people to face the future with confidence and achieve their ambitions.
Gregor Schmidt added: "Our rapid growth in Europe is being replicated in many parts of the RSM network as we support businesses through unprecedented change. Our new strategy will enable us to continue our transformation into a data-driven, technologically enabled, international organisation."
Jean Stephens, Chief Executive Officer of RSM International, said:
"We have entered a new and transformative business age, characterised by data-driven technological products and services, new approaches to working, and a clear focus on sustainability and purpose. Our growth has largely been driven by our ability to meet those challenges effectively. Our mantra as an organisation is to 'Take Charge of Change'. By building deep, long-standing relationships and giving our clients and our people what they need to make confident decisions, we will help them to be more successful. As an organisation, our own accelerated transformation will ensure our growth continues at pace, instilling within all of our clients and colleagues a fundamental confidence to thrive."