Jeff Drummonds to Focus on Strategic Growth Initiatives
LBMC, one of the Southeast’s largest accounting and business consulting firms and top 35 in the nation, today announced its current Chief Executive Officer (CEO) and Managing Shareholder Jeffrey S. Drummonds will transition his role to James R. Meade Jr. “Jim” effective January 1, 2024. Drummonds will pivot his focus to strategic growth efforts as part of LBMC’s ongoing dedication to the firm’s continued success.
“Jim will lead LBMC, PC forward at a time of continued growth and opportunity for our clients and for our firm,” said Drummonds. “He was the ideal choice because he understands the value of people and relationships, which comes first in our business. He knows attracting great talent to LBMC is imperative to bringing in great clients, and great clients lead to even greater talent.”
Meade, a CPA, is a 23-year veteran of the firm, most recently serving as a leading shareholder in the firm’s audit and advisory division and spearheading LBMC’s technology industry segment. He has managed audit services for venture capital and private equity firms and their portfolio companies, focusing on technology start-up enterprises, growth stage companies and acquisition-oriented businesses. Serving on the LBMC, PC Board of Directors and leadership committees, he is keenly aware of the issues that are critical to the future of LBMC’s success.
“I’m very proud of the impact that LBMC has had on the lives of our clients and of our employees and their families,” Meade says. “I’m equally proud of LBMC’s achievements in our profession and contribution to our communities. LBMC has accomplished great things, and I’m honored to have the opportunity to continue the momentum and excited to see where LBMC goes from here.”
Throughout LBMC’s success in becoming Tennessee’s largest CPA firm and a top firm in the nation, LBMC’s founders and executive leadership have been preparing the firm for its long-term future.
This is the firm’s second CEO transition in its 40-year history. Mike Cain and David Morgan co-founded the then Certified Public Accountant (CPA) firm of LBMC, PC in 1984 and led the firm until transitioning to Drummonds in 2015. Today, LBMC has grown to approximately 800 team members throughout a family of companies with offices in Nashville, Chattanooga, Knoxville and Charlotte, serving more than 10,000 clients across the nation.
About LBMC
LBMC is a 2023 Forbes Best Tax and Accounting Firm, one of the Southeast’s largest accounting and business consulting firms, and an Accounting Today Top Firm in the Nation serving approximately 10,000 clients with diverse needs across a spectrum of industries. Primary client groups include privately-owned middle market companies in the healthcare, manufacturing, technology, and private equity space. LBMC has more than 800 team members, with offices in Nashville, Chattanooga, and Knoxville, Tennessee, and Charlotte, North Carolina. Founded in 1984 as a traditional accounting firm, LBMC today offers a broad range of advisory and business consulting needs for its client base. Named an Inc. Best in Business company, LBMC is an industry leader in financial, human resources, technology, cyber risk, and wealth advisory services for businesses and individuals. For more information on LBMC’s experts and comprehensive services, visit ngskmc-eis.net or call 615.377.4600. LBMC is growing, and job opportunities can be found on our careers page.
Originally appeared in the Nashville Post.
Veteran accountant preps to succeed Jeff Drummonds as business consulting firm’s CEO
Author: William Williams
James “Jim” Meade is preparing to become CEO and managing shareholder for Brentwood-based accounting and business consulting firm LBMC, with the move to be effective Jan. 1, 2024.
As the Post recently reported, current company leader Jeff Drummonds will step away from those roles to focus on strategic growth efforts (read here).
A CPA, Meade is a 23-year veteran of the firm, most recently serving as a shareholder in LBMC’s audit and advisory division and spearheading its technology industry segment. He has managed audit services for venture capital and private equity firms and their portfolio companies, focusing on technology start-up enterprises, growth stage companies and acquisition-oriented businesses.
Meade also serves on the LBMC board of directors and various leadership committees.
As LBMC last week announced the acquisition of Louisville-based Strothman & Co. (read here), the Post recently asked Meade about his thoughts regarding the company.
How will the looming move involving you and Jeff impact your role and, in general, the company? And what do you mean when you reference the “firm of the future”?
LBMC’s “strategic growth” plan is centered around understanding what will be required of the “firm of the future.” We believe this must include the expansion of the firm’s capabilities in the context of markets, service offerings, key growth industries and process innovation. Both our clients’ and our people’s evolving goals and expectations are critical in defining how we expand.
I will continue to collaborate with firm leadership to refine and execute our business strategy, and Jeff will be intricately involved in that execution. We continue to assess market trends, explore potential partnerships, key talent acquisitions and transactions to help us achieve what we consider to be critical objectives.
You will also see us elevating our community relationships and partnerships as we focus on being impactful in our communities. Giving back is part of the LBMC DNA. And as we embark on our 40th-year anniversary in 2024, you will see us continue that primary focus of being an active part of the cities and communities that we call home.
LBMC posted fiscal revenues two years ago of $160.3M and $192.5 million for this most recently concluded fiscal year. How are you increasing revenue?
Like essentially all businesses, increased revenues are, to a certain extent, a reflection of the current economic environment. However, we are also focused on increasing revenue by capitalizing on our diverse service offerings and our expertise in key industries. While health care makes up 30 percent of our overall practice, we continue to see significant growth in other industries such as technology. Private equity continues to be a driver of new business in both of these industries as well as with traditional manufacturing and distribution enterprises. These businesses are well suited for our multiple-service offerings.
Moreover, we continue to build out our advisory services, covering human resources, technology solutions, staffing, cybersecurity and IT consulting, wealth advisory and procurement. This unique focus on advisory services sets us apart from many similar-sized firms. About 60 percent of our practice is dedicated to advisory services, which not only opens new revenue channels, but also fosters lasting client relationships, solidifying our role as trusted partners in their business growth.
The industry average for retaining employees is 64.2 percent, according to U.S. Bureau of Labor Statistics. In contrast, LBMC most recently saw a retention rate of 85 percent and typically each year is above 70. How are you accomplishing this?
We are very proud of the investment that we continue to place in the professional and personal growth of our LBMC people. They are the cornerstone of our business. The foundation of exceptional client experience. We were just recognized for the fourth year in a row (by GreatPlacesToWork.com) as being a national GPTW with 93 percent of employees at LBMC saying it is a great place to work compared to 57 percent of employees at a typical U.S.-based company. We are purposeful in their development, focusing not only on technical expertise, but also in preparing them for leadership roles at all levels. Coaching and mentorship are integral to our internal relationships as is transparent communication.
Young professionals of today want to feel like they not only belong, but that they are key to the success of the organization. They want relationships with decision makers and to have big picture insights as to how they fit in the enterprise. Lastly, we continue to refine a flexible/hybrid work environment without sacrificing the development of our people or client service.
With the acquisition of Strothman & Co., LBMC will bring on board from Louisville some tax audit and client accounting services professionals. What will be the significance of this?
The move into Kentucky was initially driven by our existing client base there (we currently serve more than 100-plus clients in the state) and the identification of that market as being one that fit within our strategic plan. We anticipate that many organizations want to establish relationships with a market-based service provider who can bring the breadth of service offerings we provide. Strothman is an excellent cultural fit for us to partner with to establish our fifth LBMC location.
We currently serve clients from all our offices — and have professionals working across offices regardless of location. So, we also see this as an opportunity to tap into an additional market to add talent for the overall organization.
