A Busy End of the Year for RSM McGladrey
The last month has been busy at RSM McGladrey. The firm came to the defense of mid-sized business owners; acquired Philadelphia-area Mantas Ohliger McGary & Quinn (MOMQ) and announced Jean Stephens’ promotion to chief executive officer of RSM International.
On December 21, 2005, RSM McGladrey proposed changes to proposed regulations under Internal Revenue Code Section 199 – Domestic Manufacturers’ Deduction. A prepared statement says the regulations, intended to help companies implement the new law, are “extensive, complex and could place undue administrative burdens for mid-sized businesses.” RSM McGladrey recommended seven points of clarification and simplification to the regulations including suggestions for simplifying the rules for core manufacturers, construction companies, software companies and clarification of the proposed safe harbors.
“Our recommendations are based on issues we’ve seen affecting our clients and ways these regulations can be improved so businesses can obtain the benefits intended for them,” Michael Metz, RSM McGladrey executive vice president, tax services and head of the firm’s tax practice said in a prepared statement. “We are working to get the proposed rules changed so that they are more manageable for our clients,” he adds.
In other news, the merger with MOMQ became effective on January 1, although the 25-person staff, including 15 CPAs, will not move from King of Prussia to RSM McGladrey’s Blue Bell offices until May, according to reports in the Philadelphia Business Journal. The Philadelphia Business Journal reports that the merger will give RSM McGladrey a total staff of 135 in the metropolitan area, making it the region’s ninth-largest accounting firm.
“We’ve been looking to grow for some time now,” RSM McGladrey’s Office Managing Partner Mike Durbin told the Philadelphia Business Journal. “It was just the matter of finding the right partner. I know Jack [Quin, MOMQ Managing Partner] and I have worked with the other five partners there and respect all of them. To add six high-quality partners all at once was a great opportunity. It takes years to do that [organically].”
Growth was also an important theme in the promotion of chief operating officer Jean Stephens to chief executive officer marks the first time a woman has held that post at RSM International, the Kansas City Star reports. RSM McGladrey, a unit of H&R Block, is a founding member of RSM International, the world’s sixth-largest tax, accounting and consulting organization. Since Stephens joined RSM in 1996 , RSM has increased in size by 75 percent.
“Based on the growth momentum and high-quality affiliate relationships established during Jean’s tenure with RSM International, she will do a superb job of implementing the organization’s strategy and ensuring, through our RSM regional councils, that we achieve the highest standards of performance throughout the world,” RSM International Chairman Chris Connor said in a prepared statement announcing the promotion.
RSM International has an annual growth rate of 18 percent, according to company documents and Stephens believes it has the potential to grow its global practice by 25 percent or more over the next two years. The organization recently entered markets in Vietnam, New Zealand, Belgium and Singapore and is posed for further expansion in India, China and Eastern Europe as well as adding representation in Iran, Jordan, Malta and Israel.
“RSM International has a solid record of serving clients with global operations, and my challenge is to take RSM to the next level as the provider of choice for internationally active, growing companies,” Stephens said in accepting her promotion. “Our stringent affiliate qualification process, partnership approach to serving clients, high-level account execution and vast global network enable us to provide our clients with a truly exceptional service offering and value proposition. We will continue to expand this business model into other parts of the world that represent good growth opportunities for our clients, and to generate brand recognition for the unique qualities that set us apart.”