The consultancy RSM increased its turnover by 37% and surpassed half a billion. Managing Partner Monika Marečková heads to European leadership team
Payroll consulting, accounting and tax, and cybersecurity – the disciplines with which Czech companies needed the most help last year. And even medium-sized companies were more interested in consulting services than before. This is confirmed by the domestic office of consultancy RSM, whose turnover grew by a record 37% in 2023. On the other hand, it warns that the transaction advisory and M&A market in the Czech Republic experienced a serious downturn last year and is expected to do the same until at least the middle of this year.
The turnover of CZK 544 million and its 37% growth compared to the previous year was mainly due to interest in outsourcing accounting and payroll services, i.e. payroll calculation and processing. The further acceleration of growth this year should be helped by the almost two and a half thousand new clients the company has gained after the November acquisition of Alfa Software from Klatovy – a domestic developer of payroll and time and attendance software. These are used by hundreds of medium-sized companies, hospitals and even schools.
“Only the biggest players often speak for the domestic market, but at RSM we also help medium-sized companies to take important steps and we should not forget that they are the driving force behind Czech economic growth. Last year, they were able to react very flexibly to the challenges related to the market situation and changes in legislation and I believe that our results now speak for the successful part of them,” says Monika Marečková, managing partner of RSM consulting company for the Czech and Slovak market. At the same time, she points out that entrepreneurs returned to the old normal last year and their main task now will be to catch up with wage growth not only in prices, but also in productivity, increasing digitalization and automation.
Wages are rising, the merger and acquisition market has stalled, demand has undergone a significant transformation
In addition to the most frequently requested payroll services, including payroll software, companies also turned to RSM for accounting, tax, new technologies and IT security. These disciplines accounted for an identical 10 percent of the company’s revenue. According to company management, the legislative changes brought about by the consolidation package contributed significantly to the interest. More often than not, therefore, entrepreneurs decided not to take risks and turned to specialist advisors. However, the tight labour market or the fact that many companies in the Czech Republic still lack payroll strategies also played a similarly significant role.
On the other hand, the firm saw a drop in interest in the M&A market. There were around 80 significant deals in the Czech Republic, and RSM accounted for an eighth of them. According to the company’s management, the decline in the attractiveness of the Czech Republic as a country for starting a business in Central and Eastern Europe is due to expensive money, the war in Ukraine and especially real estate prices, which make investors prefer, for example, the neighbouring Polish market, where more than 400 transactions took place.
Some of RSM’s biggest new clients last year included Calzedonia Group, Livesport, Meopta – optics, Nexen Tire and many others. In total, the firm assisted 13 hundred clients. In November, it completed the acquisition of Alfa Software, whose payroll system Avensio or other services are used by more than 2,000 other entities.
“Czech RSM is a leader in the CEE region and its exceptional growth serves as an inspiration and motivation for our entire company. I am particularly pleased that managing partner Monika Marečková is now joining the European leadership team and will contribute to the development of the region with her management experience,” says Gregor Schmidt, RSM’s regional leader for Europe.
Monika Marečková joins the European leadership team
The director of the Czech office joined RSM’s 13-member European Leadership Team earlier this year. She wants to focus on two pan-European themes – technology and promoting cooperation between European companies.
“European RSM is just as strong as the weakest among us, so my goal is to support smaller RSM companies and show them the way to success,” Marečková says of her new role, adding: “My goal is to bring a fresh impetus and expert perspective on technology, its diffusion and collaboration between European companies.”
Globally, the RSM network grew 16% last year and reported revenues of $9.4 billion. But the consultancy’s hot-card ambitions are even higher. Indeed, last year it unveiled its Taking Charge of Change strategy and with it its goal of doubling revenues by 2030.
The biggest contributors to this year’s figures were tax advisory services (17%), traditional advisory services (16%), and accounting and audit services (15%). The RSM team also grew by 13%, with more than 64,000 professionals across a wide range of sectors looking after the network’s clients. The company’s investment in technology and digitalization – areas in which RSM also profiles domestically – has even quadrupled.
