Nexia completes merry-go-round with RSM in Germany

Nexia has rebooted its German operation with the addition of the former RSM network, completing a local merry-go-round between the two international networks.

In March this year, RSM announced that it had poached Ebner Stolz from Nexia to joins its network in Germany. Ebner Stolz has around 2,100 people working from 14 locations across all major German cities.

With Ebner Stolz signing up as RSM’s exclusive member firm in Germany, the company’s existing operation – 450 people across 11 locations – was bound for an exit. An exploration of opportunities has led the ‘old’ RSM organisation into the hands of Nexia, which notably was the previous parent of Ebner Stolz.

Per October, the RSM locations in Berlin, Chemnitz, Dresden, Düsseldorf, Frankfurt, Halle/Leipzig, Koblenz, Cologne, Mannheim and Munich will become part of the Nexia network. Combined, the 11 offices generate revenues of around €62 million. Vice versa, Ebner Stolz will also close its deal in the same month.

For Nexia, the move caps a rapid response to the loss of its members firms in Germany. In April, one month after Ebner Stolz, accounting firm DHPG and law firm Cordes + Partner also confirmed their departure from Nexia to join CLA Global, a relatively new accounting and advisory network founded by US-based Clifton Larson Allen and UK-based Evelyn Partners.

“The re-launch of Nexia in Germany reinforces and highlights our dedication to the German market as a priority jurisdiction. The expertise in audit, tax and advisory services of our new German organisation is a valuable addition to our international network and greatly benefits our global clients,” said Tim Wilson, the Chief Executive Officer of Nexia.

Santosh Varughese, a former RSM partner who now leads Nexia’s German operation, said: “The global and high-quality Nexia network enables us to continue to offer customised solutions for the specific needs of our customers. Together with our service portfolio and our employees, we will therefore continue to play a significant role in the German market.”

Globally, RSM generated revenues of over $8 billion in its latest financial year. Nexia’s global turnover hovers around the $5 billion mark. Both belong to the 10 largest global networks of their kind.