BKD LLP was a 2010 honoree at Springfield Business Journal's 2010 Dynamic Dozen awards. Information was accurate at the time of the honor. Click here for information about this year's event.BKD LLP is maintaining its reputation as a heavy hitter in the accounting field, using a combination of diversification and specialization to stand out among competitors.
A Big 10 Midwest accounting firm with 350 employees in southwest Missouri and 2,000 nationwide, BKD has long operated in a variety of niches, including real estate and construction, financial services, manufacturing, health care and the nonprofit and government sectors.
“That is one thing that helps us, being very niche-focused among our groups so we’re not too heavily dependent upon one area of expertise,” said Jason Rader, a partner in the financial services group and north region leader for BKD’s firmwide banking group.
On one hand, some industries such as commercial real estate and construction, are struggling, said John Wanamaker, managing partner of the company’s Springfield-Branson-Joplin region.
On the other hand, “BKD is buoyed quite a bit because we have a large health care practice and we’re continuing to see good growth in that area,” he said.
BKD’s national health care practice stretches beyond traditional audit and tax work, Wanamaker said.
“What really drives it is the Medicare and Medicaid reimbursement aspect of health care,” he added.
While the recession dealt a blow to the financial services sector, it also has generated business for BKD, namely loan reviews for banks concerned about staying on top of risk, and due diligence work for banks considering mergers or acquisitions.
While BKD doesn’t anticipate a flood of bank M&A activity anytime soon, as the economy improves, serious merger talks are likely to pick up, Rader said.
BKD racked up gross revenues of $405 million in fiscal year 2009, an increase of 14.4 percent compared to the $354 million it registered in fiscal 2008.
While a large chunk of that revenue – $22 million – was the result of mergers with firms in Mississippi, Texas and Arkansas, the remaining $29 million was the result of same-store growth.
While he’s pleased with the firm’s performance, Wanamaker is also realistic about it. BKD’s fiscal year runs June 1-May 31, so much of its fiscal 2009 results were based on its clients’ calendar 2008 year-end data. “Many clients were doing well up until about the fourth quarter of ‘08,” he said.
Fiscal 2010, he noted, is proving more challenging, but it also offers new opportunities.
For example, clients are streamlining operations, cutting costs and weighing the return on every dollar spent for goods and services, including accounting functions.
As a result, BKD has seen some of its clients testing the waters and looking at other accounting firms to make sure BKD is the best value.
While that was initially disconcerting, the firm has not only weathered the challenge, but also gained clients, Wanamaker said, as clients of other firms have explored the market and moved to BKD.
The recession also is driving business for BKD’s forensic accounting group.
With publicly traded companies under pressure to meet earnings targets, and indebted firms under pressure to meet debt covenants, financial statement fraud is increasing.
Also, with so many individuals under financial stress, embezzlement is on the rise.
While that’s bad news for those hit by fraud, BKD’s forensics group is having a banner year in investigation, electronic evidence discovery and litigation support, Wanamaker said.[[In-content Ad]]
