Mergers and acquisitions, further improvement of digital processes, asset valuation. But also an intensive search for savings in areas burdened by state bureaucracy. These were the transformation priorities of Czech businesses last year that drove interest in RSM services. This allowed Czech and Slovak RSM to increase its turnover by another 12%, putting the company on course to doubling the size of its business in the Czech Republic and possibly elsewhere in the coming years. The efforts of small and particularly medium-sized companies (that RMS specialises in) to achieve more efficiency, manage crises and transform in today’s turbulent times are good news for the Czech economy, in which they account for 40% of GDP.
The turnover of Czech and Slovak RSM, which has been helping local businesses under the leadership of Monika Marečková since 19931, for the first time got within reach of the CZK 400 million mark in 2022: specifically CZK 395 million. This represents a 12% increase year-on-year, despite last year’s turbulent events and economic stagnation.
“Last year showed that many Czech companies managed to respond quickly to the crisis, develop intervention plans and start implementing them in the short term. The most positive result is that some of them managed to turn economic stagnation around to their advantage, recovered and are now growing again,” says Monika Marečková, Managing Partner of RSM Czech Republic & Slovakia. “Of course we’re not out of the woods yet, but the trend is very positive, which means we’re in a good position to handle the economic challenges ahead. And this is good news for the Czech economy,” she added.
High demand for consulting services continues, but the IT and technology division grew much stronger
Traditional consulting services, such as the outsourcing of accounting and payroll services and tax and transaction advisory, account for the largest share of RSM’s turnover in the Czech Republic and Slovakia, about 60%. The IT and technology division, which analyses digital opportunities and implements digital solutions in company processes, has become much stronger. Its contribution has doubled and now it makes up the remaining 40% of turnover.
The Transaction Advisory unit, which provides full service in mergers and acquisitions, achieved the highest year-on-year revenue increase (36%). From the approximately 117 most important transactions made in the Czech Republic last year, RSM handled 31. Changes on the market also significantly raised interest in our Valuation Office services, especially in the real estate sector. Interest in outsourced accounting services also grew by 22%, largely because of the digitalization of the entire field and the increasing costs of running an in-house accounting department as well as a shortage of professionals.
In 2022, a total of 1,230 clients relied on the services of Czech and Slovak RSM, including Albert, Microsoft, Weber, Hewlett-Packard, ADP, Packeta International (formerly Zásilkovna), Seznam.cz, EW EUROWAG, Emplify (formerly Socialbakers), Productboard, CPI and Memsource.
“The success of Czech and Slovak RSM is truly significant within the global network. In a few years, Monika Marečková and her team managed to triple the size of the company and it still continues to grow. They became one of the leaders in the region. Their success is an inspiration and a motivation for RSM as a whole. It has been fascinating to watch,” said Gregor Schmidt, the RSM Regional Leader for Europe. “This particular success must also be seen as the success of all medium-sized companies in the Central European region. Without growing businesses, Czech and Slovak RSM couldn’t succeed. But it works the other way around as well. Without RSM, many businesses, from growth-oriented companies to leading multinational corporations – would not grow as quickly; they would be left alone with their problems on the market without any guarantee that they will continue to be successful,” added Schmidt.
RSM achieves double-digit growth worldwide
But RSM has confirmed its reputation as the fastest-growing consulting company with its global results as well. As a network connecting 57 thousand professionals from 830 offices in 120 countries of the world, its global revenues grew to USD 8 billion, or about CZK 176 billion. In the last three years, the network saw its turnover increase by an incredible 41% and has now reported double-digit growth on all markets for two years in a row. By 2030, it plans to double its entire business.
According to RSM representatives, much of this growth is thanks to swift global professionalization of the segment of medium-sized businesses, which now account for about 17% of the EU’s economy. Interest in specific RSM services shows which current issues and challenges these companies face most often. Just like in the Czech Republic, there is a global surge in interest in digitalization, which is seen by companies as a way to increase efficiency and maintain competitiveness (26% growth) and protect themselves against cyber attacks (26% growth). The interest in key consulting services (including IT) increased by 37%, generally in relation to business development and transformation.
“RSM’s quick growth is the result of our professionals’ ability to support our clients in more than 120 countries in an environment of unprecedented and unpredictable change. In order to continue growing and to solidify our position as the global leader in professional services for medium-sized businesses, we will keep providing positive and lasting value to our employees, clients and communities. We will give them the confidence to deal with the current market environment and the changing economic situation,” said Jean Stephens, CEO of RSM International.
Medium-sized companies will continue to play a key role in the Czech economy. For this reason, Czech RSM is confident that it will reach a turnover of CZK 1 billion by 2030
In the Czech Republic, the SME segment accounts for approximately 40% of GDP and contributes to more than half of Czech exports. In many ways, SMEs are indispensable – in the Czech Republic, they are a major driver of regional growth, stabilise and diversify the labour market and play a key role in innovation and technological development.
And their importance will only grow. In the last decade, the Czech Republic and Slovakia have managed to start erasing their historical debt and the overall economic importance of this segment has risen sharply. Many entrepreneurs succeeded not only locally, but also internationally, and established brand new fields that a new generation of companies can build on in the future.
Monika Marečková also believes that this is a historic moment for further SME growth. “2023 will bring a unique opportunity to utilise global changes for an overall transformation of business and preparation for the coming market phase. This is not really an option, but a necessity. Companies that manage to get rid of unnecessary procedural burden, streamline their operations and increase flexibility will not only survive on the Czech market, but will also be competitive abroad. Companies that fail to do this or will not want to seize the opportunity will be weakened in the coming years,” said Monika Marečková. “We’ve experienced a situation like this at least twice in the Czech Republic. But this is the first time that companies can rely on commonly available technology in a big way.”
Monika Marečková believes in all Czech entrepreneurs and in the coming years expects her consulting business to grow even faster. In the first half of this year, for example, the company will double its business in Slovakia. Close collaboration with entrepreneurs who want to move forward and seek ways to increase turnover while reducing worries should enable Czech and Slovak RSM to reach CZK 1 billion in turnover in early 2030.