8-K: Cartesian Growth Corporation II Changes Certifying Accountant: Marcum LLP Replaced by CBIZ CPAs

Cartesian Growth Corporation II dismisses Marcum LLP as its independent auditor and engages CBIZ CPAs, effective May 13, 2025.

Summary

• Cartesian Growth Corporation II (the Company) has changed its independent registered public accounting firm.
• Marcum LLP (Marcum) was dismissed on May 13, 2025.
• CBIZ CPAs P.C. (CBIZ CPAs) was engaged to serve as the Company's independent registered public accounting firm for the year ending December 31, 2025, effective immediately on May 13, 2025.
• The Audit Committee of the Company's Board of Directors approved the engagement of CBIZ CPAs.
• The attest business of Marcum was acquired by CBIZ CPAs, effective November 1, 2024.
• The reports of Marcum regarding the Company's consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, included an explanatory paragraph relating to substantial doubt about the Company's ability to continue as a going concern.

Sentiment

Score: 4

Explanation: The change in auditors, combined with the previous auditor's 'going concern' warning, creates a negative sentiment. While auditor changes are normal, the context raises concerns about the company's financial health.

Negatives

• Marcum's reports for fiscal years 2024 and 2023 included an explanatory paragraph regarding the company's ability to continue as a going concern, indicating potential financial instability.

Risks

• The change in auditors could raise concerns among investors if not properly explained.
• The going concern note in previous audit reports suggests potential financial difficulties for Cartesian Growth Corporation II.

Future Outlook

The company will be audited by CBIZ CPAs for the year ending December 31, 2025.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues within a company. Investors often scrutinize these changes, especially when coupled with going concern warnings from the previous auditor.

Comparison to Industry Standards

• Auditor changes are a normal part of business, but the circumstances surrounding the change, such as disagreements or reportable events, are closely monitored.
• The presence of a 'going concern' paragraph is a red flag and would be viewed negatively compared to companies with clean audit opinions.
• Comparable companies would be other SPACs or companies in similar industries, and their auditor relationships and financial stability would be benchmarks for comparison.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the 'going concern' warning.
• Employees may be worried about the company's financial stability.
• Creditors may reassess the company's creditworthiness.

Key Dates

Keywords

auditor, CBIZ CPAs, Marcum LLP, accounting firm, Cartesian Growth Corporation II