RSM achieved strong growth across all of its service lines and regions over the last 12 months, reflecting its commitment to helping mid-market businesses navigate the post-pandemic recovery and deliver on their global ambitions. Growth was led by consulting services, which posted the biggest gains at 38.2%, followed by accounting (18.7%), tax (8.4%) and auditing (7.6%).
These latest figures mark the seventh consecutive year of strong growth globally. The year 2021 saw RSM member firms transition from supporting clients through the pandemic to investing in a radically different post-pandemic future. The adoption of new technology, evolving sustainability commitments and a wave of M&A activity among the global mid-market were key drivers of growth.
The demand for consulting services is growing
These latest figures mark the second consecutive year of double-digit growth in consulting services for RSM. This has been driven by a growing need for support from mid-market companies in a state of transition as they move from reacting to the pandemic to accelerating their transformation in preparation for a new business era.
General business consulting services, in particular, grew 128% year-over-year as the mid-market sought to evolve through broad adoption of innovative new solutions. This includes improving efficiencies from business process outsourcing, developing new solutions powered by advanced AI and automation technology, to building supply chain resilience through pioneering data analytics.
Digitization, while offering many benefits, has also seen cybersecurity issues increase, resulting in 19% growth in RSM’s risk advisory services in 2021.
Additionally, high levels of M&A activity globally led to increased demand for tax structuring and due diligence services, as private equity, venture capital and private wealth sought to take advantage of the interest rate environment. low. In Europe alone, RSM recorded 276 transactions in the first half of 2021, which is equivalent to two transactions completed by companies in the region per day over a six-month period.
Member firms also saw an increase in demand for cross-border tax advice as the complexity of international tax regulation and associated reputational risks continued to increase. Both trends were addressed with the launch of the Global M&A Tax Virtual Hub, a collaboration in New York, London, Hong Kong, Amsterdam and Mexico City. The Hub combines global and local expertise to support internationally ambitious mid-market companies with cross-border M&A transactions.
As environmental, social and corporate (ESG) governance has risen to prominence on the corporate agenda, in part driven by accelerated change associated with COVID-19 and nations’ net-zero emissions commitments cemented at COP26, firms member have helped clients develop and strengthen their business sustainability strategies.
Growth in all regions
RSM experienced growth in all regions, with more than 40 new offices opening this year. In addition to the addition of new Correspondent Firms in the Bahamas and Nigeria, a new member firm joined the RSM Network based in Turkey. This closely followed the news that RSM’s Member Firm in Germany, RSM GmbH, had acquired HTG Wirtschaftsprüfung, significantly expanding its Berlin office. These developments support the continued expansion of RSM throughout Europe. Overall, Europe posted 15% growth, driven by transaction advisory services and an increase in IT consulting.
North America also posted an impressive 15% overall revenue growth, with consulting services in the region in particular growing 50% in 2021 alone. In addition, the Middle East posted strong 23% growth, while revenue increased year-over-year by 20% in Asia Pacific, 15% in Africa and 11% in Latin America, as mid-market companies prioritized accounting, digital consulting and transformation and sustainability.
One year of collaboration
The Global M&A Tax Virtual Hub was the first in a series of international collaborations at RSM in 2021 as it responded to the second year of the pandemic. The Global Innovation Hub, a digital platform designed to accelerate innovation programs, launched a series of initiatives at the global, regional and local levels. The Digital Visionaries project saw RSM professionals collaborate with industry leaders from 14 countries to search for the next opportunity in globalization.
