RSM expands transatlantic alliance to counter private equity-backed accounting rivals

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RSM expands transatlantic alliance

Highlights

RSM adds Mexico to its alliance with the UK, Ireland, U.S., and Canada, boosting partnership staff to over 25,000 and 40 percent of global network.
RSM accelerates integration of member firms in response to mid-sized rivals like Grant Thornton U.S. and Crowe securing private equity and pursuing global acquisitions.
RSM to revamp governance from July 1, giving larger members more influence as CEO Brian Becker joins the global board and directs new investment for cross-border service.

Mexico joins RSM’s cross-border partnership

As first reported by the Financial Times, RSM tells partners that Mexico is joining its alliance with the UK, Ireland and Canada, broadening a transatlantic arrangement that the U.S. firm begins last year with its UK and Irish counterparts.

Brian Becker, chief executive of RSM U.S., says the addition makes it easier to serve clients such as manufacturers whose supply chains span several of those countries. He says the partnership encourages firms to pitch jointly for work and share revenue, while profits are pooled for calculating partner retirement payouts.

Becker also says the partnership is seeking additional member firms to join. Mexico’s 1,200 employees lift total staff in the arrangement to more than 25,000, representing more than 40 per cent of RSM’s global network.

Competitive pressure reshapes global accounting networks

RSM is tightening integration as competition rises among mid-sized firms, especially after rivals secure private equity backing to fund international expansion. Grant Thornton U.S., which sold a stake to New Mountain Capital, has acquired more than a dozen sister firms worldwide, while Crowe last week sold a stake to KKR and signals overseas acquisitions are a possible next step.

The pressure to operate more seamlessly across borders is also pushing governance changes. RSM says oversight of its network in 120 countries is being revamped from July 1 to give larger member firms greater influence, with Becker joining the global board as the group aims to direct more investment across the network and deliver more consistent service for international clients.

That trend extends beyond the middle market. Deloitte, EY, PwC and KPMG have all taken steps in recent years to integrate their member firms more tightly as clients increasingly demand borderless service.

In our earlier article on the Brexit legacy and the UK’s long-term relationship with the EU, we covered Jean-Claude Juncker’s view that Britain would face strong resistance if it tried to rejoin the bloc. We noted that the UK would likely lose former opt-outs such as the euro exemption, Schengen exclusion, and the budget rebate, and that political factors in both the EU and Britain could make any re-entry bid difficult.

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