The U.S. and U.K. firms of global accounting network RSM International announced that they are planning on combining as a single firm by the end of 2025.
The proposed combination would create a transatlantic giant with over 23,000 professionals and annual revenues of $5 billion, with locations in the U.S., the U.K., Canada, Ireland, India and El Salvador.
The idea was sparked by the individual experiences of both RSM US and RSM UK Holdings in combining with other members of the network.
Photo courtesy of RSM US LLP
RSM US, for instance, saw growth through
“When we financially integrated Canada in 2017, we saw a real lift in serving clients back and forth based on how we could bring the full power of our combined firm together,” RSM US managing partner and CEO Brian Becker told Accounting Today. “When you’re financially integrated, we saw the 1+1=3 effect. We have exponential growth — our Canada firm has tripled in revenue since 2017, from $65 million to $205 million.”
Becker said that RSM UK had seen similar results from combining with the network’s firm in Ireland.
“They’re seeing the same momentum,” he said. “That’s what sparked it for us: We saw the incredible momentum that being financially integrated can help facilitate.”
Between regulatory questions, internal discussions and the various entity structures that need to be negotiated, the timeline for the combination is not certain; Becker was sure it would not happen in 2024, and the firms are aiming for it to be completed in 2025.
“We hope it will be in 2025, but … that might be wishful thinking,” he acknowledged with a laugh.
Once the combination is finalized, however, Becker expects to benefit from the fact that the firms — the two largest in the RSM network — are already aligned in terms of service offerings, structure, and in other ways, as well as having had many chances to work together in the past.
Micah Highland Photography
“There will be integration issues — there are integration issues between California and Texas in our own firm,” Becker joked. “But we are both part of our RSM network … We’ve had a chance to work together already, so we know that even when we have issues between us, we’re able to trust each other and work them out. Our experience with them is what gave us confidence that, in coming together, we could work through any issues.”
For the moment, RSM US isn’t looking at combining with other members of RSM International, though it’s open to the idea.
“I’m really focused on this one, because this is such a big deal,” Becker said. “We’ll focus on this and we’ll see this through. We think it’s going to be the same momentum, and then in the future, if it’s strategic, probably other countries are going to be interested. But we still need a really strong international network, because obviously we can’t own 120 countries’ firms. So we’re really focused, as is Rob [Donaldson, the CEO of RSM UK], on doing the work to really to prove the model out.”
While quick to point up the value of the international network, Becker sees an extra level of value in operating as a fully combined international firm.
“It’s hard to say why this is different from a network, because it really shouldn’t be different, but there’s something magical about being financially integrated where you share in the collective success of each other in all matters,” he said. “There is something magical to that, and I think we’re going to unlock the value and prove it again, just as we did in Canada.”
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