"OFF THE BOOKS" REVENUE AND VALUATIONS
Has anyone had experience with valuations that are based on reported and unreported income? I don't imagine a lender or investor would appreciate the rationale that the valuation seems high because it's based on all revenue, not just the stuff that's reported on taxes. For scale, the unreported income would increase SDE by ~20%. Is this a common practice in business with lower valuations ($1-5M)?