HBK’s Business Services Set Firm Apart

YOUNGSTOWN, Ohio – Twenty years ago, a shift in strategy at HBK CPAs & Consultants set the course for exemplary growth at the firm, adding to what was already a dynamic and diverse company, its executives say.

It proved to be a critical moment for the 75-year-old HBK, reflects Jim Dascenzo, Principal. “It was really monumental,” he says.

The new strategic planning initiative helped to transform HBK from what was mostly a tax, accounting and consulting operation into a multidisciplined business services company, according to Dascenzo.

Since then, the firm has added services such as wealth management; information technology; retirement planning; leadership and culture development; and valuation, litigation and forensics.

“I’m amazed at the growth that we’ve had and the resources we’ve brought to share with our clients,” says Phil Carlon, Principal.

“That’s just been an amazing journey,” he says.

WEALTH ADVISORY

Among the first of the vertical additions came in 2001, when HBK acquired the Sorce Financial Group – a wealth management practice in Erie, Pa. – and started that new division, says Jim Rosa, Principal.

The timing of the venture wasn’t perfect: the tech bubble had burst, and the devastation wrought by 9/11 was just around the corner, he recalls. “That first year, I think we lost a million dollars in that practice,” he says.

Still, the effort proved successful – very successful. At the time HBK launched its wealth management division, the business had approximately $250 million under management, Rosa says. Today, HBK Wealth Advisors manages a portfolio of nearly $7 billion.

The division handles insurance services, retirement and benefits serv-ices, investment management, estate planning, and business succession planning, Rosa says.

“I do a lot of work with family-owned businesses and succession is always a very important discussion,” Rosa says. This is especially important if the next generation is divided over working in the family company.

“Let’s say there’s a family with four children. One works in the business and the other three don’t,” he posits. “How’s that going to work? Is ownership going to be for the one that works in the business or will all four be owners? You need planning for that.”

LEADERSHIP AND CULTURE

Another service that is unique to HBK is its business culture and training division, or HBK High Performance, Dascenzo says.

Through this division, HBK identifies the strengths and weaknesses within an organization that may limit its growth and develops a plan so the business can thrive, such as establishing a means for executive leadership transitions.

An executive of a manufacturing client recently noted that the use of HBK’s High Performance executive coaching services has proven valuable in developing his company’s culture. “He said that it’s helped his retention, helped his recruiting, and it’s building a culture that has really helped them in manufacturing, where others are struggling to find employees,” Dascenzo says.

INFORMATION TECHNOLOGY

As HBK expanded to other locations and offices across the country, so too did its technological capability, principals say. This drive to improve connectivity between its locations engendered the development of an entire information technology department.

Then, in 2021, HBK acquired Vertical Solutions, a managed provider service based in Pittsburgh that also had a presence in Denver. The acquisition created an entirely new company under HBK’s umbrella, Vertilocity. HBK’s IT services today include proactive IT support, advanced threat protection, Office 365 management and support, as well as tools and software designed specifically for the client’s needs.

“I have a client who had gone out and hired a programmer,” Dascenzo says. The client wanted a real-time system where he could manage his business from a beach. “The programmer couldn’t do it, so we came in and in a matter of two weeks, our group built him a dashboard.”

Today, the client can easily access real-time data on his electronic devices from which he can manage products, sales and inventory.

“More importantly, it’s about what information is needed to manage your business,” Rosa says. “The Vertilocity group can help design reports and provide analytical information that’s important to manage the business.”

Moreover, the IT division cross-pollinates throughout HBK’s service lines, Rosa adds. For example, should a client working with HBK’s wealth management or transactional services group consider acquiring another company, the client could use the Vertilocity division to perform due diligence on the cyber health of the other company. “They could go in and analyze that and see where there may be issues – such as cyber risks,” he says. “It’s ever expanding.”

TRANSACTIONAL AND VALUATION SERVICES

HBK has also added a transactional and capital services division that is designed to guide its clients through the sales and acquisitions of assets, Dascenzo notes.

“A lot of our clients are buying and selling businesses,” he says. “A lot of them are small, privately owned businesses and go through a couple of generations and have nobody to pass it on to.”

Often, that leaves the owners no other choice but to consider selling, Dascenzo says. HBK provides advisory services on business purchases and sales, as well as a corporate finance division that can assist a client in an acquisition or merger. “We have clients that want to grow, and this group can help them acquire practices,” he says.

The firm also operates a valuation, litigation and forensics division, Dascenzo adds. “I think what sets us apart from other firms is that we have people that just do valuations,” he says. “We don’t have someone who worked on a funeral home’s tax return in the morning and then does a valuation of a car dealership in the afternoon,” he says. “These are specialists. In the 36 years I’ve been here, it’s really evolved into a science and art.”

Meanwhile, HBK’s litigation arm works closely with attorneys and their clients, while its forensic experts are versed in uncovering issues such as fraud.

“Each of these additional services we could provide strengthens the relationship that we have with the client, and that we are their most trusted adviser,” Dascenzo says.

Rosa says that many of the ideas envisioned during the strategic plan 20 years ago have been realized. “Any plan is only as good as your execution,” he says.

“You have to have action steps and get that buy-in,” he continues. “With every step, there’s never been a better time to be at HBK. The opportunities are endless.”

Pictured at top: HBK’s mantra, “Working together sets us apart,” is posted on the wall of the training room at the Canfield headquarters.

Copyright 2024 The Business Journal, Youngstown, Ohio.