Is a CPA recommended for Due-Diligence?

November 06, 2025

by an investor from Universidad de Oriente in Miami, FL, USA

I’m under contract on my first business acquisition and in due diligence. I reconciled three years of tax returns, P&Ls, and bank statements (with ChatGPT’s help), and the analysis shows strong evidence the reported revenue is legitimate. I’m comfortable with the profitability analysis, but I keep hearing I “must” hire a CPA. If I do, I’d expect a QoE focused on contractor-specific risks: revenue cutoff/deposits, job margins/WIP, sales & use tax exposure, subcontractors/COIs, fixed assets/UCC liens, and the working-capital peg. As a first-time buyer, I’m trying to decide whether these added checks could change my decision or price. Given this, would you recommend hiring a CPA to perform a QoE? If so, what scope, cost, and timeline should I expect, and how might the findings impact price, structure, or closing conditions?

Reply by a searcher
from Eastern Kentucky University in St. Petersburg, FL, USA

I can't fathom doing it without one myself. When I was going through my first acquisition, I learned so much and they took a tremendous load off of me. I prioritized someone that I was comfortable with and had expertise, so I would be able to have good dialogue and learn from them. I'm very pleased with who I worked with. This is my second acquisition that I'm working on with them, and again I can't imagine even trying to do the level of diligence that they are doing to the degree that they are doing it. It was worth every penny for me to work with ^redacted‌

Reply by an intermediary
from Transylvania University in Nashville, TN, USA

It depends. QoEs are overpriced right now. Don't get ripped off. If your investors or lenders require it, find a reputable firm with the best price. If not required and the business accounting is not complex, the proof of cash you completed should be ample. Does the selling entity conduct audits or reviews? If you really need to calculate normalized earnings, would like an external look at their financials, and could benefit from the other comps, analytics, and metrics that come with these reports now, go for it. There is a lot of support in this community for them. We don't do them because we buy smaller businesses and don't overpay based on our calculated risk.

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