Is RSM Aiming for Mid-Market Supremacy?

In a world dominated by the Big Four, the planned merger of RSM US and RSM UK is a major shake-up in the accounting and advisory landscape. With over 23,000 professionals and $5 billion in combined revenue, this merger stands to create a mid-market powerhouse. This transatlantic move positions RSM to provide comprehensive services for clients needing consistent cross-border support, making RSM a force in mid-market accounting. Let’s break down what this merger means for the industry and why it’s capturing attention on both sides of the Atlantic. 

How Did We Get Here? 

The accounting world has long seen the Big Four—Deloitte, PwC, EY, and KPMG—sitting at the top. Yet, there’s a rising need for firms that can cater specifically to mid-sized businesses. RSM, with its U.S. and U.K. divisions, has carved out its niche by focusing on clients that need personalized advisory services without the hefty price tag. The RSM network, with independently owned firms across the globe, has thrived by maintaining local expertise and flexibility. However, with businesses expanding internationally, it’s no longer enough to operate within borders. Clients now demand consistent services across the map, and firms are being pushed to evolve beyond independent national entities. 

The merger between RSM US and RSM UK answers this demand, aiming to deliver a seamless client experience on both sides of the Atlantic. In a nutshell, this move is about knocking down the barriers of profit-sharing and operational silos to create a more unified, robust entity. It’s the start of a whole new ball game. 

What’s in it for RSM? 

You might be thinking, why merge? Well, this isn’t just any corporate marriage. RSM US CEO Brian Becker points out that the U.S. and U.K. economies are deeply intertwined. RSM sees this as a strategic leap, especially as the U.K. is the top destination for U.S. foreign investment, meaning mid-market clients need solid cross-border support. RSM UK’s CEO, Rob Donaldson, emphasizes that this merger aims to remove the “barriers” created by separate profit-sharing and operational models within the network. He highlights the success of RSM UK’s acquisition of its Irish affiliate last year, along with RSM US’s acquisition of Canadian operations in 2017, as clear examples of how financial integration can boost performance and enhance client service.

A merged RSM could offer clients a single point of contact for all their advisory, audit, tax, and consulting needs, simplifying the lives of busy financial professionals. Think about it: no more piecing together services from separate entities. Instead, clients get an all-in-one experience, wrapped up in one package. 

Playing in the Big Leagues (Without Private Equity) 

As more firms are grabbing private equity cash to fuel growth, RSM is taking a different path. While other major players have welcomed outside investors to supercharge expansion, RSM has opted for organic growth. Why? It seems both Becker and Rob Donaldson, CEO of RSM UK, are keen on retaining full ownership and control, avoiding the short-term pressures that often come with private equity. 

But don’t mistake this for hesitation. RSM’s leaders are confident in the firm’s profitability and believe they can reach their goals with this merger without a cash injection from outsiders. Down the road, they’re open to exploring investment options if needed. For now, however, they’re betting on the merger itself to fuel growth, with a long-term view that focuses on building a strong foundation for their clients. 

Crossing the Pond 

Let’s not gloss over the reality here—this isn’t just a case of shaking hands and cutting a ribbon. The merger still needs regulatory approval in both countries, and RSM doesn’t expect it to wrap up until 2025. Integration will take time, and RSM’s teams have their work cut out for them. They’ll be grappling with everything from harmonizing corporate cultures to smoothing out operational differences. 

But what’s a merger without a few bumps in the road, right? Both Becker and Donaldson have acknowledged these challenges but express confidence in the shared vision that has already aligned their teams over the years. They’re not diving in unprepared—this is a meticulously planned move designed to strengthen RSM’s mid-market leadership position. 

Will RSM Overtake the Big Four? 

Hold up—does this merger mean RSM is gunning for the Big Four’s territory? Well, not quite. The Big Four’s domination isn’t going anywhere, but this merger puts RSM in a league of its own within the mid-market sector. Think of it as the best of both worlds for clients: global resources and expertise, but with a focus on mid-sized businesses and the kind of personalized service they crave. 

RSM won’t be stealing headlines from Deloitte or PwC anytime soon, but for the mid-market, they’re positioning themselves as the go-to firm. With a combined revenue that’s double what their nearest mid-market competitor earns, they’re in an enviable position to grow and innovate, setting new standards for mid-sized business services. 

A New Dawn for the Mid-Market? 

RSM’s merger is more than a strategic expansion—it’s a statement. The company is saying loud and clear that the mid-market deserves its own heavyweight contender. By merging their U.S. and U.K. divisions, RSM isn’t just growing; it’s redefining what’s possible for mid-sized businesses that need cross-border support. 

This merger is like a bold first step in the dance of transatlantic business, and RSM has made it clear they’re ready to lead. So, while we wait to see how the merger unfolds, one thing is for sure: RSM’s move is a win for mid-market clients who want to work with a firm that’s as global as they are, without sacrificing that personal touch. 

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