30.06.2016

» Total turnover increases by 11.3% to reach 357.4 million euros
» Exclusive M&A study: USA key target market for acquisitions of German family-owned companies abroad

Nuremberg, 27.04.2016: Rödl & Partner continues to extend its legal, tax, audit and consulting services provided to German family-owned companies. In the financial year for 2015 (31.12.2015) the company increased turnover by 11.3% to 357.4 million euros. Turnover in Germany amounted to 183.1 million euros (+7.7%) and business outside Germany increased to 174.3 million euros (+15.4%). Around the world Rödl & Partner today employs 4,200 people (previous year: 3.900) in 106 own offices in 49 countries. 

"We benefit from the strong international presence of our clients. This is because we support medium-sized global market leaders in Germany and around the world”, explains the Chairman of the Executive Board Prof. Dr. Christian Rödl. "Our formula for success is the caretaker principle, a single contact who as a consultant or auditor will know the client company very well and will coordinate our worldwide activities for that client. They brief the professionals of the expert teams and all the information passes through them. This enables clients to benefit from the full range of our professional expertise and allows them to concentrate on their core business. In the same way as our clients, we have a global organisation and an efficient structure. We would not be able provide this customised, comprehensive support for our clients if we were merely a network.”

M&A study: Germany most important country for strategic company acquisitions

The dynamic development of the economy is accelerating the continuing trend towards acquisitions worldwide. In this process Germany remains the most important target country for acquisitions. The USA continues to be the most attractive country for investments made by German family-owned companies abroad. As the economies of a number of former growth countries weaken, interest has once again returned to Central and Eastern Europe. In particular, Poland and the Czech Republic are attractive for investors. Italy also remains in the focus for acquisitions. These are the findings of the fourth exclusive M&A study from Rödl & Partner. In the course of the study the professional services firm asked M&A experts and key account managers at banks in March and April 2016 about the targets in the course of the internationalisation of German companies.

Last year almost a quarter of the banks recorded an increase in the M&A activities of their German clients. This year two thirds of the experts expect a constantly high level of transactions and a quarter of the experts expect a growing number of transactions. The automotive industry has pushed slightly ahead of the mechanical engineering industry and services sector to become the most attractive field for investors. But the banks also anticipate more M&A business in the field of renewable energy.

"Family-owned companies use strategic acquisitions to expand into new markets and gain expertise and customers. However, the competition for innovative and growing firms is fierce”, emphasises Rödl. "Excessive asking prices are a stumbling block for transactions. Apart from that the owners are less disposed to sell due to low returns on capital investments.”

Growth in all business areas

In total, all of the service lines of the firm are experiencing an upward trend. Legal (+10.9%) has increased as has tax (+10.6%), management and IT consulting (+21.5%) and audit (+9.2%). There is important momentum coming from the current legal, tax and audit services and also very much from complex advisory projects including transactions, restructuring and consulting for the company succession.

Transaction consulting as growth driver

The high number of company acquisitions and disposals is driving the growth of Rödl & Partner in all business areas. Global legal, tax and management consulting is provided for transactions. "In many countries, and especially in Germany and the USA, we have again strengthened the M&A practice groups with experienced transaction specialists”, reports Rödl. "All the deals are managed by German-speaking project managers who coordinate operations across borders and disciplines. Our international and interdisciplinary orientation in this area gives us a considerable competitive edge.”

Digital agenda of Rödl & Partner

International, family-owned companies are currently investing heavily into the modernisation and digitalisation of their business processes. Rödl & Partner has established a digital agenda for all business areas. The outsourcing of IT within the framework of German security architecture is a pressing matter for clients in the same way as IT audits or data protection.

Auditing is particularly benefiting from this trend. "Today the digitalisation of our processes allows us to have closer relations with our clients”, explains Rödl. "We carry out cross-border audits of the annual consolidated financial statement on the basis of electronic business processes. We are attracting global market leaders as clients because we are able to support their development on an equal footing.”

International expansion to continue

Rödl & Partner now offers professional services in 106 own offices in 49 countries. New offices in Ulm, Germany and Havana in Cuba have recently been added. In the near future offices will also be opened in Teheran (Iran) and Manila (Philippines).

"Our international presence enables continuous services in all the important markets where German companies do their business”, emphasises Rödl. "For us expansion always means tapping into new markets while enlarging our existing locations in terms of personnel and the services offering.”

For example, the 7 offices in the USA are enjoying substantial growth. In unstable countries such as Russia, Ukraine and Kazakhstan Rödl & Partner remains reliably at the side of its clients and has, despite difficult operating conditions, generated ongoing growth. In Germany the Bielefeld office set up in 2014 has enjoyed excellent success. The office is located in the heart of an economic zone in North-Rhine Westphalia which is particularly characterised by international family-owned companies.

Appointment of new Partners in 2016

In the course of the International Convention of Rödl & Partner, the summit of the firm's international professionals in Nuremberg in June 2016, appointments for more than 20 new Partners will be made. "Our firm is the ideal place for entrepreneurially-minded lawyers, tax advisors, management consultants and auditors to build an international career", emphasises Rödl. 

Source: Rödl & Partner