What’s the Worst Decision Ever Made?

 

The late comedian David Brenner used to perform this routine he called “the worst doctor.”

The premise of the shtick was that of all the people who were awarded medical degrees, someone somewhere in the world had to earn the dubious designation of being the “worst doctor.”

I would think the long-term effects of being treated by the worst doctor would far surpass having your 1040 prepared by “the worst CPA.” After all, undergoing an audit is far better than the potential horrors of medical malpractice.

Not being a CPA myself, I cannot vouch for the skill set or lack thereof of questionable practitioners but it’s safe to say that many of them can and have made some of the worst decisions in recent memory.

Case in point.

We recently took on the plight of a sole practitioner in the Northeast, who had a profitable practice generating slightly over $1 million in billings. He was in his mid-60s and plainly speaking he had “had it.” The tandem of annual tax season pressures and the COVID-19 pandemic resigned him to the fact that it was time to take down the proverbial shingle and take up pickleball in a warmer climate.

He was so hurried to exit stage left that he only wanted to work one more year on a full-time basis. So, what does he do? He goes ahead and signs a five-year extension on his lease. Let me repeat that for emphasis, FIVE years.

So now anyone even remotely interested in his practice would not only incur the not unsubstantial costs of merger integration, but they also now must assume a lease they certainly did not want in the first place.

Not to be outdone, we had another client who needed some consulting help on a recent merger he completed on his own. The firm owner not only did not perform a much-recommended deep dive in basic due diligence, but the firm he acquired specialized in hospitality and movie theater clients. And this was several months ago when the pandemic was in full bore.

Now is there anyone, anywhere in the country who was not aware that restaurants and theaters (both movie and Broadway) were among the hardest hit in the pandemic? His actions would be sort of like having a financial planner advise you to invest in Blockbuster Video.

I could go on with more examples of head-scratching case studies but that would occupy far more space than I’m allotted here.

As we approach the busiest portion of filing season, I can only hope that post-April 15^th those firm owners who swear they will not endure another year, will not fall victim to “the worst decision” syndrome. That’s an overcrowded field as it is.