2009 Dynamic Dozen, No. 7: BKD LLP

Springfield-based accounting firm BKD LLP knows a good niche when it sees one.

"Years ago, we recognized that in order to be successful in public accounting, you had to specialize by industry or in a specific service niche," said John Wanamaker, managing partner of the firm's Springfield-Branson-Joplin region.

Specialization and niche focuses have paid off for the 85-year-old accounting firm, which had 2008 revenues of $354 million and employs 316 locally and 2,000 firmwide.

Of the firm's thousands of clients nationwide, many fit into specific industries. For example, firmwide, BKD's construction and real estate team serves more than 3,700 clients; the financial services team accounts for more than 1,200, the health care team for more than 2,500, the manufacturing team for more than 2,700 and the not-for-profit/government team for more than 1,500.

Specialization "allows those individuals to go deep into those particular industries and not only serve them well from an audit and tax perspective, but also just understanding operations," Wanamaker said.

The perspective an industry focus gives the accountants also adds value to client relationships - especially in trying times.

"As we get in and look at a particular client's situation, we can make recommendations because we see in a particular industry what works well and what doesn't work well," Wanamaker said.

Focusing on niches also provides a different view of major industries than what is perceived at street level.

"From a banking perspective, 2008 was tough for not just large banks but (also) for community banks, but the banking industry as a whole is still very strong," said Jason Rader, a partner in the financial services group and north region leader for the banking group firmwide.

Rader noted that more than 97 percent of U.S. banks are considered "well-capitalized," a fact that seldom makes the headlines.

"You hear a lot of negative things about what's going on with the economic times and in banking, but there are still a lot of positives, and we have a lot of clients who are ready to loan and are lending money," he said.

The financial sector also is driving BKD's business as accountants work to interpret Troubled Asset Relief Program regulations or assist banks with loan-loss reviews.

While many perceive health care as a recession-proof industry, Wanamaker points out that it, too, is affected by economic conditions.

"In the hospital sector for instance, while their revenue sources from Medicare are generally fine, hospitals generally are required to service the indigent, and in down times, that number increases and stresses the health care system," Wanamaker said. "Hospitals many times will have large endowments to help subsidize that indigent care, and with the stock market crash, many portfolios have declined as well."

Moving forward in the current economy, Wanamaker said BKD is cautiously optimistic.

"We are trying to be very proactive with our clients to assist them from a business and operations perspective in figuring out what are some strategies to weather the economic storm," he said. "We are not sitting back; we're going to keep the focus on growth like we always have, and we expect to close the year with good growth, both in the local market as well as firmwide."

In fact, BKD has been in growth mode since its fiscal year ended May 31. Effective June 1, BKD opened an office San Antonio by merging with The Hanke Group, a $12 million firm. BKD also established itself in Mississippi by merging with three smaller firms: Smith, Turner & Reeves; Johnson Bruce & Host; and Shearer, Taylor & Co., creating a $10 million operation with 70 people.

BKD's Mississippi operation has its main office in Jackson, and a smaller office in Oxford.

Most recently, BKD merged with the Mark Lundy of Lundy, Allard & Co. PLLC in Rogers, Ark., on Jan. 1.

Later this year, BKD expects to relocate its headquarters from Hammons Tower in downtown Springfield to a new, four-story structure just across the street. Developer Opus Northwest LLC is constructing the 109,000-square-foot building, and BKD will lease the second, third and fourth floors. The $21.5 million building is slated for completion May 31.