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- PE just bought into another CPA firm
PE just bought into another CPA firm
just added the borders
Hope you all had a great long Fourth of July weekend.
I share the 4-5 most important accounting that actually matter. I scroll so you don’t have to.
So grab your coffee, take a quick break, and lets catch up.
Today’s Ledger:
PE found a side door into CPA firms.
The IRS is showing up to the World Cup.
States owe $2.7 trillion. Somehow, pensions made it worse.
WTF of the Day🤯
PE Money Just Hit Another CPA Firm
Meaden & Moore just took money from Unity Partners. The dollar amount was not shared. But that is not the interesting part. The real move is the structure. The firm will keep its name and leadership, but it will now run under a split setup. The licensed CPA firm keeps the audit work. A separate company handles tax, advisory, forensics, and other services that can grow faster.
That split is becoming the PE playbook for accounting firms. Private equity cannot just buy the whole firm and run audits like a normal business. So the money goes to the side of the firm with fewer limits. That sounds good on paper. Keep the brand. Add capital. Grow faster. But year two is where the truth shows up. Hiring, pricing, partner pay, tech spend, and client mix will show whether this made the firm better or just more complicated.
What’s poppin in accounting🍿
The World Cup Comes With A Tax Bill
The World Cup is not just bringing goals, tourists, and overpriced hotel rooms to the U.S. It is also bringing tax problems. Foreign players can owe U.S. tax on money they earn while playing here. And depending on where they play or train, they can owe state tax too. New Jersey wants its cut. California can tax athletes based on the days they work there. Texas and Florida are easier because they do not have state income tax. Same tournament. Very different tax bill.
The funniest part is that FIFA usually finds a way to keep itself clean. Teams got some federal relief. FIFA has special tax treatment. Sponsors and broadcasters may get breaks too. But the players are still exposed. A British star like Harry Kane may be helped by the U.S. and U.K. tax treaty. A Brazilian player like Vinicius Junior could get hit harder because Brazil does not have a U.S. tax treaty. So yes, the World Cup winner gets a trophy. But the IRS and state tax agencies may be the real undefeated teams.
Weekly Trend Chart 📊
States Are Sitting On A $2.7 Trillion Tab
State governments owe $2.7 trillion. That is about $8,000 for every person in America. California has the biggest pile at $497 billion, which sounds insane until you look at Connecticut. Connecticut owes $26,187 per person. New Jersey is right behind it at $22,968 per person. That is the better way to look at this. Big states have big totals. But some smaller states are quietly carrying ankle weights.
The wild part is what the debt really is. A lot of it is not normal bond debt. It is old promises. Pensions. Retiree health care. Benefits that sounded affordable when politicians made them. Illinois alone has $145 billion in pension debt. California has $82 billion in retiree health care debt. This is why government budgets can look fine for a year and still be a mess underneath. The bill does not disappear. It just waits for the next taxpayer.
Meme of the Day😂
I feel attacked 😂