"The CPA had gone on a honeymoon, leaving no way to contact him—just as Carlos was left with no way to contact his sanity."

Why You Should Never Trust a CPA with a Fresh Tan

Meet Carlos, a guy who finally found the perfect business. He signed the contract in May, thinking it was smooth sailing from here. The seller, full of confidence, boasted that the books were immaculate—after all, they were handled by a CPA.

Carlos dived into due diligence, expecting a straightforward check of the company's balance sheet and profit-and-loss report. But instead of clarity, he found negative liabilities. Yes, liabilities that were somehow negative, like a loan that pays you to borrow money. When Carlos asked the seller for an explanation, the response was classic: “Oh, I don’t handle the books; let's ask the CPA.”

As the deadline for due diligence approached, Carlos started sweating bullets. His emails to the CPA went unanswered, and the seller was as helpful as a cactus in a lifeboat. Finally, Carlos suggested an online meeting. When the big day came, the CPA dropped a bombshell: he wouldn’t hand over the full accounting database because it "belonged to him." Carlos, undeterred, tried to extend the due diligence process, but weeks passed without answers.

The CPA then pulled the ultimate disappearing act—he went on a honeymoon to the Caribbean, leaving Carlos hanging with only vague promises from the CPA's secretary. Four months later, after an epic battle, Carlos finally got the truth: the negative liabilities were a mistake, buried under layers of poor accounting.

The kicker? Because of this accounting blunder, the seller undervalued his own business and got less money. So, lesson learned: when your CPA returns from a tropical vacation, double-check his work before he starts dreaming of margaritas again.

Checklist of Main Ideas:

• Beware of balance sheets with bizarre entries like negative liabilities.

• Always request the full accounting database.

• Don’t rely solely on the CPA or seller for accurate information.

• Be prepared for unexpected delays, like CPAs taking month-long honeymoons.

• Negotiate the extension of the due diligence period if necessary.

• Ultimately, you are responsible for making the final judgment on the business.

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