Scariest Words You'll Ever Hear in Due Diligence
►EXECUTIVE SUMMARY  1) "WE DON'T REALLY FOLLOW GAAP" — THE SEVEN WORDS THAT KILL A DEAL: 45 minutes into a 60-minute call, after sustained pressure, the seller's CPA finally admitted they'd been ignoring generally accepted accounting principles for 25 years. Every misalignment, every weird line item, every volatility spike — explained in one sentence. 2) CPAS WILL DEFEND BAD WORK UNTIL THE WALL CRUMBLES: The CPA spent most of the call protecting their reputation. Expenses were in wrong line items, nothing matched QuickBooks, and the financial presentation was custom fiction. They only cracked when the evidence was undeniable. 3) 25 YEARS OF NON-GAAP REPORTING MEANS 25 YEARS OF UNRELIABLE DATA: You can work around a few quirks. You cannot work around a company that has systematically ignored the only standard in accounting for a quarter century. There's no add-back for that. Walk away.