Owning our future
The 2011 reunification marked a turning point in the firm’s identity. After years operating in a split structure, leaders and partners saw an opportunity to reunite the business around a single strategy, a shared culture and a stronger sense of ownership.
The years under H&R Block had fueled significant growth. RSM was a $300 million firm when it joined H&R Block; in just over a decade it reached $1.2 billion in annual revenue. “We became a growth-oriented firm. We did a lot of acquisitions that H&R Block helped finance,” says Jeff Johannesen, retired national tax leader and chief strategy and innovation officer. Over time, however, the alternative practice structure became difficult to manage, and culture and long-term objectives became harder to reconcile.
Reunification required patience. After McGladrey & Pullen's board signaled the firm's desire to separate from H&R Block in 2009, months of negotiation and an arbitration ruling kept the two entities together for another 18 months until H&R Block decided to sell RSM McGladrey. It soon became evident that McGladrey & Pullen was the most logical buyer, and the firm reached an agreement to buy the tax and consulting assets from H&R Block, paving the way for reunification.
At a September 2011 partners meeting in Las Vegas, more than 99% of partners agreed to the purchase. They pledged capital, and the firm restructured as a single entity known simply as McGladrey from 2012 until rebranding as RSM US in 2015.
The partners meeting itself became part of firm lore. More than 600 partners gathered at the Venetian in Las Vegas, where Adams and the board made their case for reunification, calling it “a sure bet.” Adams told partners this was their chance to become “one firm, under one roof, without worrying about competing objectives, different strategies.” He paired that message with a bold projection that the reunited firm could one day reach $3 billion in annual revenue.
