09/03/2026
A seller says there are no liens on the business. Ten days before closing, the title company discovers roughly $250,000 in unpaid IRS payroll taxes.
Dennis Hayes shared this story from a real transaction, and it’s a pretty good example of why buyers have to verify what they’re being told during due diligence.
You can ask all the right questions, but that doesn’t mean every answer should be taken at face value. Financial issues, liens and other liabilities have a way of surfacing before a deal closes, and finding them late can completely change the transaction.
Hear more on the Before You Buy or Sell a Business Podcast.