Business service company LBMC buys W Squared

8/4/2017

Business services company LBMC, which has a large Knoxville office, has bought related firm W Squared, LBMC announced this week. That means the combined company will offer more services to area clients, and should soon lead to some hiring in Knoxville, said Greg Gilbert, managing shareholder of the LBMC Knoxville office.

“A lot of the work that W Squared brings us will be done out of the Knoxville office,” he said.

LBMC opened in 1984 and provides financial, human resources, technology, information security, and wealth advisory services to more than 6,000 clients, according to a news release.

“We began as a traditional accounting firm,” Gilbert said. “Over the last 30 years or so our clients have just asked us for more services.

“W Squared fits in nicely with that, because they provide outsourced accounting professionals to their clients, as do we.”

W Squared, in business for 12 years, offers many of the same services; but also provides procurement services, mostly for health care-related items, Gilbert said. That will help LBMC’s Knoxville office, which already works with many local health-care companies and physician practices, he said.

Ethics rules prevented him from naming clients, but Gilbert said LBMC and W Squared both serve many health care and manufacturing firms.

Jeff Drummonds, CEO of LBMC, said in a news release his company has worked alongside W Squared for mutual clients for more than a decade. Both firms also serve private-equity clients, but different ones, Gilbert said.

Headquartered in Brentwood, LBMC also has a Chattanooga office. W Squared is based in Nashville.

LBMC has 66 employees in its Knoxville office, according to Justin Wilson of Nashville PR firm Hall Strategies. It was already the largest professional business services company in Tennessee, and the addition of 60 from W Squared will bring the total to about 600, Wilson said.

Source: Knoxville News Sentinel by Jim Gaines

The East Tennessee Economic Development Agency markets and recruits business for the 15 counties in the greater Knoxville-Oak Ridge region of East Tennessee. Visit www.eteda.org

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