Rödl & Partner again with strong growth

Nuremberg, 23.7.2024: Rödl & Partner is firmly pursuing its growth course. Despite the tense geopolitical situation, Rödl & Partner was able to increase its global turnover to a total of 663.1 million euros in the 2023 financial year, which corresponds to growth of 12.7 percent compared to the previous year. A similar increase of 12.3 percent to a total turnover of 377.0 million euros was achieved in Germany. In 2023, the professional services firm was also able to acquire numerous new and significant mandates and successfully expand existing mandates. The firm remains true to its strategy and primarily counts internationally operating German family businesses among its clients. Together with them, Rödl & Partner's expansion course – now with 110 offices in around 50 countries – and the steady further development of its interdisciplinary services are possible.

​The turnover growth in 2023 took place across all five service lines of Rödl & Partner. "Many companies are facing major market, regulatory and technological challenges. Numerous clients operate internationally and are therefore confronted with multi-layered and complex regulatory frameworks. With our cross-border advisory services as an international firm, we are able to identify the needs and requirements of our clients and provide them with solutions," says Prof. Dr. Christian Rödl, Chairman of the Management Board of Rödl & Partner, on the main reason for the growth in the past year. In addition to the continuing high demand in auditing, there was particular momentum in the areas of international tax structure consulting and the transaction teams in all disciplines. Client demand for accounting advisory has also grown dynamically. 

"Due to the increasing globalisation of many of our clients, there is a combination of traditional consulting areas, tax and legal advice and increasingly very specific compliance issues, such as ESG or data protection in IT. A case-by-case approach from company to company and country to country is essential in order to find the best solution," says Christian Rödl, explaining the approach of the Nuremberg-based consultancy. Complex tax compliance issues such as reporting on Pillar II global minimum taxation, e-invoicing, the capital market viability of family businesses and legal and tax adjustments with regard to company succession pose challenges for many companies. In addition, amended energy laws demands a great deal from companies. "With our interdisciplinary range of services, we are able to offer solutions for such complex constellations and thus create significant added value for our clients. Rödl & Partner is excellently positioned for the future with its strategy," says Christian Rödl confidently.

​The pressure to develop and respond to digital transformation remains high. The fact that digital transformation is always associated with tax, legal and business management issues is both crucial and challenging. With Finance4Future, Rödl & Partner has created an interdisciplinary offering of IT consulting and advisory services to provide its clients' finance teams with future-oriented support. The use of artificial intelligence is now also part of the firm’s day-to-day business with the aim of increasing efficiency across all service lines.

Due to the enormous changes, the energy sector also deserves special mention. The demand for energy consulting has increased significantly as a result of the pressure for change in the sector. In line with the importance of the market, Rödl & Partner was able to further expand its strong position and grow significantly in this sector. 

​The figures in the M&A sector speak for themselves: despite the high level of interest rates, Rödl & Partner was able to achieve a record number of 353 transactions in 2023. This was made possible by the consistent expansion of transaction advisory services. Companies from a total of 35 countries were part of the 2023 transaction business, highlighting Rödl & Partner's international focus. 

Overall, advisory services increased significantly in terms of internationalisation and the development of new markets as well as risk diversification. Rödl & Partner was particularly successful in this context in the USA, India and Turkey, but also in the neighbouring European countries of Poland, France, Spain and Italy as well as the United Kingdom.

Despite the tense situation on the labour market, the firm was able to further increase its number of employees. The number of colleagues is rising steadily and amounted to 5,781 at the end of last year (previous year: 5,466). Of these, 2,320 are based in Germany. "We are enthusiastic digitalisers. However, digitalisation must never be an end in itself. It must meet our needs and support us all in our daily work. Advising people by people, supported by the digital tools of their time and AI use cases, therefore remains crucial," says Christian Rödl. Christian Rödl cites the availability of highly qualified advisors on the job market as a key criterion for continued positive business development.

​In particular, regulations and their implementation, such as sustainability reporting, will continue to be an important part of the advisory services in the coming year. The obligation for non-financial reporting on the basis of the CSRD (Corporate Sustainability Reporting Directive) is particularly relevant. ESG reporting, which is now mandatory, has thus become a central element of change in the consulting industry. 

What was initially an issue exclusively for large corporations is now also affecting the Mittelstand with supply chain compliance. Rödl & Partner is increasingly supporting its clients in meeting the huge increase in documentation pressure with regard to the EU taxonomy across all service lines. In addition, the scope of existing service lines has deepened. The documentation requirements for minimum tax from Pillar II are challenging for many companies and therefore require advice. It can also be seen that company relocations are on the rise, increasing the demand for exit tax advice. The introduction of e-invoicing is another regulatory measure in the digital transformation process that is keeping companies very busy. Rödl & Partner is also continuing to expand its succession advice, which is already at a high level. 

Meanwhile, legal advisory services focused on assisting companies with international acquisitions. Furthermore, reorganisation to reduce liability as a result of the realignment of group structures developed into a significant area of business. In the case of corporate succession, it has become apparent that family businesses are increasingly involving private equity and investment companies, which in turn leads to a particular demand for advice. Other trends include labour law advice in crisis situations and support in contentious disputes. In 2024, there will also be a high level of demand for advice in the dynamic energy and healthcare sectors. Advice on digital transformation and innovative business models will also be a major driver.

Furthermore, the rapid advance of artificial intelligence and the associated legal issues will not only occupy clients, but also Rödl & Partner itself. The aim will be to further optimise its own service creation process through the use of AI. 

Since the firm was founded in 1977, Rödl & Partner has recorded continuous growth in its business activities: turnover has more than doubled since 2013.