- RSM’s revenue in Latin America climbs to US$181.7m in 2023, as middle-market businesses navigate political and regulatory change
- Double-digit growth realised for second successive year in assurance, accounting and tax services
- Further success driven by 41% rise in business consultancy services and 29% rise in IT consulting
RSM, the leading provider of assurance, tax and consulting services to middle market businesses, has today announced annual revenues in Latin America of US$181.7m, reflecting 18% growth compared to the previous year*.
Amid notable political shifts across the continent over the last two years, subsequent changes in tax policy and regulation have become a routine challenge for middle-market businesses. RSM experts across the region have worked with business leaders to unlock value when adapting to such changes.
Preparations for the Global Minimum Tax has driven a 22% increase in tax revenues in the region to US$32.7m, in addition to internationally active companies seeking support to navigate changing tax environments. This marks a second successive year of double-digit growth for RSM’s tax service line in Latin America.
Statutory audit requirements for private and public companies mean that assurance and accounting services are foundational for RSM in Latin America, representing more than 70% of overall regional revenues. Increasing demand for audit services was underlined by 25% growth.
Additionally, with middle-market businesses firmly focused on the future and digital transformation, RSM has seen a 41% rise in business consultancy services and a 29% rise in IT consulting across the region.
Eileen Turkot, Regional Leader for Latin America at RSM, commented: “Latin America has seen significant change in the last two years, with new political regimes and recovery from the ongoing economic fall-out from the pandemic meaning middle-market businesses are seeking support across a variety of areas.
“Managed services, once seen as a cost-saving measure from clients, has now evolved to a tech-driven, value-added consulting service, as clients are increasingly seeing the value in trends, analytics, data management and insights. “Support through a changing regulatory environment has made our tax expertise of critical importance to internationally active business leaders. This is likely to continue in the year to come as businesses prepare for the Global Minimum Tax. “Latin America is also home to some of the most dynamic and important ecosystems in the world, and our Environmental Social and Governance (ESG) specialists will continue to strengthen their advisory services to middle-market businesses as the IFRS non-financial reporting standards come into play. Moreover, we believe the introduction of key European Union reporting directives and policy will impact Latin American businesses.”
It comes as RSM has announced worldwide revenues of US$9.4* billion for the 12 months to December 2023, a year-on-year growth of 16%*.
Global fee income for accounting and audit services rose by 15% to US$3.6bn, while RSM’s tax revenues jumped by 17% to US$2.6bn. Consulting revenue totalled US$3.1bn, representing a 16% increase on 2022.
Since the launch of RSM’s 2030 Global Strategy at the start of 2023, over the past 12 months RSM has established the critical building blocks for ongoing growth, transformation and change, focusing on four Strategic Drivers – People, Clients, Technology and Solutions. With a 13% increase in global headcount, RSM is dedicated to developing an unrivalled, inclusive culture and talent experience, believing investment in both people and technology to be critical to sustained growth and delivering rich, personalised client experiences. Global technology and digital investment increased four-fold over 2023 compared to 2022, over and above the significant technology investments being made by RSM member firms in all territories.
Jean Stephens, CEO of RSM International, said: “This year’s financial results further cement our status as the leading global provider of professional services to the middle market. Powered by our 2030 Global Strategy - Taking Charge of Change – RSM has worked collaboratively as a global organisation more than ever before to innovate and better serve clients across borders.
“With an emphasis on the generation and sharing of insight, streamlining the efficiencies and effectiveness of service provision and building connectivity through an enhanced global digital infrastructure, RSM is focused on providing innovative and valuable human insights powered by technology.”
The first key milestone of 2024 for RSM is the launch of its evolved global brand – with new visuals and re-energised messaging designed to be more representative of the breadth and depth of the organisation today and to better reflect RSM’s purpose - to instil confidence in a world of change. Continuing to hero their people as the central pillar of their brand, RSM has introduced a new creative device taken from the DNA of its logo. Named the ‘Pattern of Progress’, the device reflects the journey of discovery RSM undertakes to build dynamic and compelling solutions to individual client needs. It symbolises forward movement and the attainment of future goals in an ever-changing complex world, reflecting RSM’s focus on the issues that matter most to its clients and people.
Among the technological developments underway, January 2024 will see the launch of RSM Luca, the organisation’s digital audit ecosystem, integrating sophisticated technologies and efficient processes to better enable agile, insight-driven, tech-forward audits tailored to client’s unique business environments.
RSM is also committed to significant additional investment over the year in sustainability frameworks and initiatives, and the evolution of independence systems and inspections procedures to ensure quality and responsible business practices remain central to RSM’s service provision across all areas.
Jean Stephens added: " Over 2024, we will undertake a vast number of transformative projects as we continue to harness our global strength and build maximum relevance with our key stakeholders. These financial results support our solid foundation for even greater future growth, ensuring RSM goes from strength to strength as we move forward with confidence, commitment, and energy.”