RSM US is reported to be in talks to acquire its UK arm, if green light, would be the first major transatlantic combination in the accountancy sector.
Both firms target the mid-market, as reported by the Financial Times, this deal would allow them to better serve clients with international operations.
RSM UK has been through several re-brands and name changes, including rebranding as RSM in 2015. It now has 350 partners across the UK, and as the FT revealed, were provided details on Thursday about the talks about the potential merger with is US sister.
Chief executive of RSM UK Rob Donaldson said, “it’s very much a merger” adding that “there is no money changing hands. It’s not about generating cost synergies, though there may be some of that. It’s about generating faster growth.”
While Brian Becker, chief executive of RSM US explained the UK arm has capabilities in capital markets consulting where the US firm was less strong, noting the UK is the largest destination for foreign direct investment from the US.
“We’re not trying to be the ‘Big Five’, we’re trying to be the ‘Big One’ to really dominate the middle market,” he told the FT.
The UK arm’s most recent results revealed it had revenues of £543m in the year to March, a 12 per cent increase on the previous year, while the US arm reported revenue of $4bn (£2.8bn) in the year to April, up 8 per cent.
These talks come on the back of rival Grant Thornton back in July was reportedly considering selling a stake in its business to private equity.