REPORTED INCOME ON TAX RETURNS AND LENDING ISSUE

I'm writing an offer on a company that is otherwise very attractive, but is being run "to minimize the owner's taxes". The owner is very hesitant to accept an offer with bank financing involved, so it's likely my offer won't be accepted. The broker in this case is agreeing with the seller, as he said he has seen deals approved by the banker, but were then denied by underwriting after jumping through all the hoops and providing all required information to back up the stated financials.

Assuming the numbers are as stated, and all verifiable. How would an underwriter look at something like this? Should these type of companies be avoided during a search?

Thanks!



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