FRAUD!!! Taxable income is lower than Financial Statement Income.

How can you spot fraud??? It is hard to. However if a seller's taxable income is way lower than financial statement income, This is a big sign something may be going on. Does this mean the deal is dead? Not Necessarly. But it does mean, in a lot of cases, the sellers are under reporting income to the government as a "Tax Strategy" or tax evasion... An SBA bank will have a hard time approving your loan in most of these cases. ^redacted‌ how does this change the lending process? There are good reasons for Taxable income to be lower than financial statement income, but you have to understand why that is occuring, (different depreciation methods may be one, but personal expense going through the business to lower taxes is not one) Set up a free consulation with me to discuss your next acquisition. If you are a business owner, I can help you prepare to sell. calendly.com/qoeprep